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Highlights
- Amazon (AMZN) stock rose after reports of its plan to open departmental stores.
- Alibaba (BABA) stocks continue to tumble due to China’s plan to regulate companies’ consumer data.
- TJX Companies, Inc (TJX) reported sales of US$12.1 billion in Q2, 2021.
Stocks of Amazon.com, Inc (NASDAQ:AMZN) and TJX Companies, Inc (NYSE:TJX) surged after the former revealed plans to open departmental stores, and the latter posted solid Q2 earnings the previous day. However, Alibaba stock dipped after China’s move to regulate companies’ consumer data.
Here we look at some of the recent developments of the three companies.
Alibaba Group Holding Limited (NYSE:BABA)
Alibaba (BABA) stock declined 3.57 percent to US$166.20 at 9.29 am ET on August 19 after reports that the Chinese government has proposed a new privacy law governing how companies could collect or store consumer data. The news negatively impacted the stock.
BABA’s stock price on Thursday was the lowest since October 2019. It fell 25.94 percent YTD.
Also read: NVIDIA Corp (NVDA), Robinhood Inc (HOOD) post solid Q2 revenue growth
China’s new rule also bars internet companies from unfair online competition, such as using algorithms to attract customers.
BABA’s total revenue in Q2, 2021, was US$31 billion, up 34 percent YoY. However, income from operations fell 11 percent YoY to US$4.7 billion in the quarter.
Alibaba logged a net income of US$6.6 billion or US$2.57 per diluted share in Q2, up 10 percent YoY. Its net cash from operations and free cash flow in Q2 were US$5.2 billion and US$3.2 billion, respectively.
The company’s market cap is US4467 billion, the P/E ratio is 21.02, the forward P/E one year is 20.77, and the EPS is US$48.20. The highest and the lowest stock price of the company for the past 52 weeks was US$319.32 and US$172.11.
Source: Pixabay.
Amazon.com, Inc (AMZN)
Amazon stocks rose 0.29 percent to US$3210.57 at 9.56 am ET on August 19 after announcing plans to open departmental stores at many locations.
The total revenue of the blue-chip company was US$113.8 billion in Q2 against US$88.9 billion in Q2 the previous year. The gross profit was US$48.9 billion against US$36.2 billion in Q2 last year. The net income of the large-cap company was US$7.7 billion compared to US$5.2 billion in Q2 the previous year.
The market capitalization of the eCommerce company is US$1.6 trillion, the P/E ratio is 55.88, the forward P/E one year is 60.09, and the EPS is US457.37. The highest and lowest stock price of AMZN for the past 52 weeks was US$3773.08 and US$28871.
Its stock price fell by 1.57 percent YTD.
TJX Companies, Inc (NYSE:TJX)
TJX stock was up 0.12 percent to US$73.08 at 10.22 am ET on August 19, a day after the company released its Q2 earnings. Net sales of the apparel and fashion retailer in Q2 were US$12.1 billion, up 23 percent YoY. The segment profit increased by 29 percent YoY to US$1.5 billion. The diluted earnings per share were US$0.64.
The company estimates that temporary closures of the stores due to the pandemic impacted profit by US$300-US$350 million in the second quarter.
It paid US$614 million to shareholders through dividend and share repurchases.
Also read: Buckle up: Four fastest-growing Nasdaq technology stocks to watch
The market capitalization of TJX is US$87 billion, the P/E is 35.35, the forward P/E one year is 27.76, and the EPS is US$2.06. Its annual dividend is US$1.04. The highest and lowest stock price of the company in the past 52 weeks was US$74.65 and US$50.06.
Bottomline
Amazon and TJX expect growth in revenue and profit with recovering economy, evident from their Q2 earnings. On the other hand, Alibaba might struggle due to the new rules by the Chinese government.
