Latest news with #NathanNaidu
Business of Fashion
14-05-2025
- Business
- Business of Fashion
Sea Profit Tops Estimates as Online Shoppers Keep Spending
Sea Ltd. reported profit that topped analysts' estimates, a sign that the Southeast Asian e-commerce leader is holding up well against fierce rivals TikTok and Lazada. The company's American depositary receipts jumped as much as 8.4 percent in New York after Sea reported net income of $410.8 million for the first quarter through March, compared with a year-earlier loss. Analysts predicted $353.4 million on average. Sales climbed 30 percent to $4.84 billion, roughly in line with estimates. The results suggest online retail arm Shopee is having success fending off ByteDance Ltd.'s TikTok and Alibaba Group Holding Ltd.'s Lazada across Southeast Asia. Newer contenders like Shein and PDD Holdings Inc.'s Temu are also targeting the region of more than 675 million people, where more shoppers are moving online. In a display of its strength, Shopee has been steadily raising the commissions it charges merchants in many core markets by about a third since the start of last year. The hikes, which bring Shopee's fees far above its rivals, show that Sea is confident it can attract and retain merchants, helped by a broad user base and well-established delivery services. Shopee's first-quarter revenue rose 28 percent to $3.5 billion. Meanwhile, Sea's aggressive cost-cutting drive, including thousands of job cuts, has helped the company pad its bottom line. Shopee's sales and marketing expenses as a percentage of its gross merchandise volume contracted, reflecting the cost reductions. Besides the tough competition, Sea's challenges include US-imposed tariffs that could hit the fragile economies of the emerging markets where it operates, souring consumer sentiment. While the company has curtailed its international expansion, it's grown in markets such as Brazil to diversify its customer base. Sea is also betting on new initiatives in areas from digital finance to logistics to convince investors of its long-term earnings potential. Its finance arm — now known as Monee — has overtaken its gaming arm in terms of revenue. What Bloomberg Intelligence says Sea's high-margin advertising services and logistics strength should further improve earnings at its e-commerce segment. Its use of generative AI to improve product discovery should convert more platform visitors into buyers. That would raise the appeal of its ecosystem to merchants looking to place ads. Its well integrated, first-party logistics enable it to deliver orders in two days or less in its home market of Southeast Asia, an edge that could extend to Brazil. That would help Sea defend against TikTok's plan to expand e-commerce in Brazil, says analyst Nathan Naidu. By Olivia Poh Learn more: Shopify Sees Second-Quarter Revenue Above Market Estimates The Ontario-based e-commerce company forecast second-quarter growth in the mid-twenties percentage range.
Yahoo
13-05-2025
- Business
- Yahoo
Sea Profit Tops Estimates as Online Shoppers Keep Spending
(Bloomberg) -- Sea Ltd. reported profit that topped analysts' estimates, a sign that the Southeast Asian e-commerce leader is holding up well against fierce rivals TikTok and Lazada. A New Central Park Amenity, Tailored to Its East Harlem Neighbors What's Behind the Rise in Serious Injuries on New York City's Streets? NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies LA Mayor Credits Trump on Fire Aid, Stays Wary on Immigration Lawsuit Challenges Trump Administration Policy on Migrant Children The company's American depositary receipts jumped as much as 8.4% in New York after Sea reported net income of $410.8 million for the first quarter through March, compared with a year-earlier loss. Analysts predicted $353.4 million on average. Sales climbed 30% to $4.84 billion, roughly in line with estimates. The results suggest online retail arm Shopee is having success fending off ByteDance Ltd.'s TikTok and Alibaba Group Holding Ltd.'s Lazada across Southeast Asia. Newer contenders like Shein and PDD Holdings Inc.'s Temu are also targeting the region of more than 675 million people, where more shoppers are moving online. In a display of its strength, Shopee has been steadily raising the commissions it charges merchants in many core markets by about a third since the start of last year. The hikes, which bring Shopee's fees far above its rivals, show that Sea is confident it can attract and retain merchants, helped by a broad user base and well-established delivery services. Shopee's first-quarter revenue rose 28% to $3.5 billion. Meanwhile, Sea's aggressive cost-cutting drive, including thousands of job cuts, has helped the company pad its bottom line. Shopee's sales and marketing expenses as a percentage of its gross merchandise volume contracted, reflecting the cost reductions. Besides the tough competition, Sea's challenges include US-imposed tariffs that could hit the fragile economies of the emerging markets where it operates, souring consumer sentiment. While the company has curtailed its international expansion, it's grown in markets such as Brazil to diversify its customer base. Sea is also betting on new initiatives in areas from digital finance to logistics to convince investors of its long-term earnings potential. Its finance arm — now known as Monee — has overtaken its gaming arm in terms of revenue. What Bloomberg Intelligence Says Sea's high-margin advertising services and logistics strength should further improve earnings at its e-commerce segment. Its use of generative AI to improve product discovery should convert more platform visitors into buyers. That would raise the appeal of its ecosystem to merchants looking to place ads. Its well integrated, first-party logistics enable it to deliver orders in two days or less in its home market of Southeast Asia, an edge that could extend to Brazil. That would help Sea defend against TikTok's plan to expand e-commerce in Brazil. -Nathan Naidu, analyst Click here for research (Updates with stock reaction in the second paragraph.) The Recession Chatter Is Getting Louder. Watch These Metrics US Border Towns Are Being Ravaged by Canada's Furious Boycott Two Million Meat Sticks a Day Isn't Enough for Chomps' CEO Maybe AI Slop Is Killing the Internet, After All With the New York Liberty, Clara Wu Tsai Aims for the First $1 Billion Women's Sports Franchise ©2025 Bloomberg L.P.
Yahoo
13-05-2025
- Business
- Yahoo
Sea Profit Tops Estimates as Online Shoppers Keep Spending
(Bloomberg) -- Sea Ltd. reported profit that topped analysts' estimates, a sign that the Southeast Asian e-commerce leader is holding up well against fierce rivals TikTok and Lazada. A New Central Park Amenity, Tailored to Its East Harlem Neighbors As Trump Reshapes Housing Policy, Renters Face Rollback of Rights What's Behind the Rise in Serious Injuries on New York City's Streets? NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies LA Mayor Credits Trump on Fire Aid, Stays Wary on Immigration The stock jumped as much as 10% in US pre-market trading after Sea reported net income of $410.8 million for the first quarter through March, compared with a year-earlier loss. Analysts predicted $353.4 million on average. Sales climbed 30% to $4.84 billion, roughly in line with estimates. The results suggest online retail arm Shopee is having success fending off ByteDance Ltd.'s TikTok and Alibaba Group Holding Ltd.'s Lazada across Southeast Asia. Newer contenders like Shein and PDD Holdings Inc.'s Temu are also targeting the region of more than 675 million people, where more shoppers are moving online. In a display of its strength, Shopee has been steadily raising the commissions it charges merchants in many core markets by about a third since the start of last year. The hikes, which bring Shopee's fees far above its rivals, show that Sea is confident it can attract and retain merchants, helped by a broad user base and well-established delivery services. Shopee's first-quarter revenue rose 28% to $3.5 billion. Meanwhile, Sea's aggressive cost-cutting drive, including thousands of job cuts, has helped the company pad its bottom line. Shopee's sales and marketing expenses as a percentage of its gross merchandise volume contracted, reflecting the cost reductions. Besides the tough competition, Sea's challenges include US-imposed tariffs that could hit the fragile economies of the emerging markets where it operates, souring consumer sentiment. While the company has curtailed its international expansion, it has grown in markets such as Brazil to diversify its customer base. Sea is also betting on new initiatives in areas from digital finance to logistics to convince investors of its long-term earnings potential. Its finance arm — now known as Monee — has overtaken its gaming arm in terms of revenue. What Bloomberg Intelligence Says Sea's high-margin advertising services and logistics strength should further improve earnings at its e-commerce segment. Its use of generative AI to improve product discovery should convert more platform visitors into buyers. That would raise the appeal of its ecosystem to merchants looking to place ads. Its well integrated, first-party logistics enable it to deliver orders in two days or less in its home market of Southeast Asia, an edge that could extend to Brazil. That would help Sea defend against TikTok's plan to expand e-commerce in Brazil. -Nathan Naidu, analyst Click here for research (Updates with stock reaction in second paragraph.) The Recession Chatter Is Getting Louder. Watch These Metrics US Border Towns Are Being Ravaged by Canada's Furious Boycott Two Million Meat Sticks a Day Isn't Enough for Chomps' CEO Maybe AI Slop Is Killing the Internet, After All With the New York Liberty, Clara Wu Tsai Aims for the First $1 Billion Women's Sports Franchise ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Japan Times
11-04-2025
- Business
- Japan Times
Nintendo Switch 2 and Sony PS5 likely to get price hikes due to tariffs
Japanese entertainment giants Nintendo and Sony are likely to raise prices on their game consoles in response to U.S. tariffs, according to the latest research from Bloomberg Intelligence. American consumers would pay as much as 30% more for a Switch 2 or PlayStation 5 under the base-case scenario, which would imply pricing close to $590 for the soon-to-be-released Nintendo flagship machine or Sony's PS5 Astro Bot bundle. Both devices are assembled in China, which is now subject to a 125% duty for shipments to the United States, although Nintendo also has an expanding production footprint in Vietnam, which has a 90-day reprieve from elevated tariffs. Console makers are the most vulnerable players in the video game industry, said BI analyst Nathan Naidu, due to their hardware businesses and need to ship physical goods. The U.S. accounts for 29% of revenue for Tokyo-based Sony and 37% of sales for Kyoto-based Nintendo, he said. The market is indispensable for both companies: U.S. consumers drive global trends, and word-of-mouth recommendations boost entertainment product demand. A 30% price hike in Nintendo's Switch 2 is contingent on an 80% to 90% tariff imposed on its U.S. imports, according to Bloomberg Intelligence's base case scenario, Naidu said. "Still, Nintendo might hold back from raising prices as it can use the 90-day reprieve on tariffs to further bolster its U.S. stockpile.' Nintendo partner Hosiden has committed almost all of its Vietnam production from the start of this year to the U.S. market, showing the stockpiling effort is already under way. Personal computer makers, similarly, spent the first quarter of the year hastening shipments to the U.S. in anticipation of potential tariffs. Even with a three-month pause from U.S. President Donald Trump's administration on the most severe tariffs — except for those on China — there's still a flat 10% levy that the U.S. is now charging on any incoming goods from overseas. Nintendo shares fell 5.4%, and Sony's shares dropped 9.4% in Tokyo on Friday, adding to a volatile week that just a day earlier had both companies registering double-digit moves up. The uneven stock price moves reflect uncertainty about the tariffs floated by Trump, including questions about the exemptions countries like Japan might win. A representative from Nintendo declined to comment. A Sony spokesperson did not respond to a request for comment. For Nintendo, the 90-day window clears up the picture around the June 5 launch of the Switch 2 and provides time to ship what could be millions more units to the U.S. from Vietnam. Even so, the company has yet to open preorders in the U.S., which it delayed indefinitely to assess Washington's tariff announcements. Should Sony or Nintendo have to significantly hike U.S. prices, there will be pressure to reflect the change across global markets, Naidu said. Nintendo's future hinges on making the upcoming Switch 2 console a success, as it will soon be the primary platform for delivering its many popular game franchises and characters. Sony may find it tougher to sustain sales of a more expensive PS5, which is now more than four years old. Xbox maker Microsoft may have the easiest time of the three, Naidu said, as it's less reliant on production partners that are subject to higher U.S. levies.
Yahoo
18-03-2025
- Business
- Yahoo
Grab Is Said to Move Forward With Talks to Buy Rival GoTo
(Bloomberg) -- Grab Holdings Ltd. is moving forward with its attempt to take over GoTo Group, according to people familiar with the matter, who said the Singaporean ride and delivery firm has begun due diligence on its Indonesian rival. ICE Eyes Massive California Tent Facility Amid Space Constraints How Britain's Most Bike-Friendly New Town Got Built The Dark Prophet of Car-Clogged Cities Washington, DC, Region Braces for 'Devastating' Cuts from Congress NYC Plans for Flood Protection Without Federal Funds Grab has been evaluating GoTo's accounts, contracts and operations, the people said, asking not to be identified because the companies haven't announced a deal. Grab, GoTo and their shareholders have also been assessing the potential structure and value of an agreement, the people said. Talks are ongoing and may not lead to a transaction, the people said. Grab, which is backed by Uber Technologies Inc., has held on-and-off talks with GoTo, but a merger never materialized, partly because of antitrust concerns likely to arise from combining two dominant Southeast Asian tech companies. Uber left the region in 2018 in exchange for its stake in Grab, and smaller competitors haven't eaten significantly into Grab and GoTo's market share. Representatives for Grab and GoTo declined to comment. Grab is considering a valuation of more than $7 billion for GoTo, Bloomberg News reported in February, with one scenario being an all-stock purchase at over 100 rupiah a share. Discussions have intensified and the two see 2025 as an opportune year for a deal, people with knowledge of the talks have said. Shares of GoTo, whose investors include SoftBank Group Corp., rose as much as 6.3% early Tuesday afternoon while the broader Indonesian stock market plunged the most since 2011 on concerns about a weakening economy. GoTo's shares are up about 15% this year, giving the company a market value of 95 trillion rupiah ($5.8 billion). What Bloomberg Intelligence Says The chances of regulators clearing a merger between Grab and GoTo, or a takeover of GoTo by Grab, are slim given the combined entity would effectively have a 60-70% share of the Southeast Asian on-demand services market, we calculate using Momentum Works' data. This may be viewed by the regulator as potential monopolistic behavior. The integration of both operations may not only attract tough regulatory scrutiny, but could also result in workforce retrenchment. -Nathan Naidu, analyst Click here for research Growth for both Grab and GoTo has cooled dramatically from triple-digit rates as consumers in Southeast Asia curtail spending to cope with elevated inflation and interest rates. --With assistance from Yoolim Lee. (Updates with GoTo share reaction in seventh paragraph.) The Real Reason Trump Is Pushing 'Buy American' Snap CEO Evan Spiegel Bets Meta Can't Copy High-Tech Glasses Nvidia Looks Past DeepSeek and Tariffs for AI's Next Chapter How Trump's 'No Tax on Tips' Could Backfire for the Working Class How America Got Hooked on H Mart ©2025 Bloomberg L.P. Sign in to access your portfolio
