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  • The $10 Stock You Should Buy Today

    The $10 Stock You Should Buy Today

    "My friends were laughing at me," Wall Street legend Paul Mampilly explains. "The stock is up over 2,400% since that fateful day."

  • Tesla Stock Drops After Announcing Plan For $2 Billion Offering
    Investor's Business Daily

    Tesla Stock Drops After Announcing Plan For $2 Billion Offering

    Tesla stock dropped as the company announced that it intends to offer approximately $2 billion of common stock in a registered public offering. Elon Musk will participate.

  • How to Retire Comfortably at 62

    How to Retire Comfortably at 62

    You might already know that you can begin taking Social Security benefits at age 62 - but should you? For starters, taking Social Security at the lowest possible age means a lower monthly benefit amount. But retiring at 62 also … Continue reading ->The post How to Retire Comfortably at 62 appeared first on SmartAsset Blog.

  • Big Oil Warned White House China Trade Deal Was Unrealistic

    Big Oil Warned White House China Trade Deal Was Unrealistic

    (Bloomberg) -- Industry leaders privately warned the Trump administration that the U.S. will struggle to produce the oil, gas and other energy products that China has committed to buy in a new trade deal, raising additional questions about one of the president’s signature economic achievements.The “phase one” deal signed by President Donald Trump on Jan. 15 calls for China to purchase an additional $52.4 billion in liquefied natural gas, crude oil, refined products and coal over the next two years. To do that, China would have to import an additional 1 million barrels per day of crude oil, 500,000 barrels per day of refined products and 100 tankers full of liquefied natural gas, the American Petroleum Institute cautioned last month in a closed-door meeting with the Energy Department.Those amounts would strain shipping infrastructure and production capacity and would require China to purchase more crude oil than the federal government has predicted the U.S. would add in new production by 2021, the oil industry lobbying group said.“The United States’ ability to expand its exports of crude oil and other liquids would likely become a binding constraint,” API said in its briefing for the Energy Department. And “even if production is available, logistical challenges remain with marine shipping and the Panama Canal.”The warnings were detailed in briefing materials seen by Bloomberg News and confirmed by two people familiar with the late January meeting who asked not to be identified describing a private discussion. The meeting was requested by the Energy Department as the agency sought to understand how the Chinese purchase commitments would affect the U.S. oil and gas industry after the trade pact was inked, the people said.The presentation by an industry viewed as one of the biggest beneficiaries of Trump’s trade deal with China underscores questions about China’s commitment to buy at least $200 billion more in U.S. goods and services over the next two years -- more than double the $187 billion the U.S. exported to the Asian nation in 2017. Doubts have already been raised about the ability of U.S. to rapidly ramp up production of soybeans and other agricultural goods to fulfill the Chinese purchase pledges.“We appreciated the opportunity last month to brief the DOE about the challenges and opportunities that the phase one agreement presents,” API’s senior vice president of policy, economics and regulatory affairs, Frank Macchiarola, said in an emailed statement. “While market conditions suggest more clarity around particular issues is needed, we commend the administration for gathering information from stakeholders to ensure this agreement is implemented successfully.”Spokespeople for the U.S. Trade Representative and the White House did not respond to a request for comments.Oil and gas industry representatives have broadly hailed the trade package, with the API in January proclaiming it “a step in the right direction for U.S. energy.” Other oil and gas leaders also have celebrated the Chinese purchase commitments, with Anne Bradbury, chief executive of the American Exploration and Production Council, saying the phase one deal “helps us plan and invest in critical infrastructure to expand access to global markets while supporting U.S. jobs and economic growth.”Nevertheless, analysts have already warned that logistical and contractual constraints could make it hard for China to make good on its purchase commitments. For instance in gas, the nation is set to see a major increase of competing pipeline imports from Russia in the coming years that will squeeze LNG trade.API offered a similarly sober assessment to the Energy Department, counseling that any ramp-up in Chinese purchases of U.S. crude oil could displace nearly one third of current exports, bid up prices and strain existing shipping capacity, especially over the next two years.Coronavirus OutbreakThe briefing occurred before an industrial shutdown in China caused by the novel coronavirus outbreak that sent oil prices tumbling and led analysts to sharply cut forecasts for global demand this year.The meeting was one of several the Energy Department had with industry representatives ahead of a planned trip to China with Commerce Secretary Wilbur Ross. An Energy Department official said similar discussions were held with a broad range of leaders in coal, LNG and trading in preparation for the trip.A decline in expected oil demand globally and the coronavirus outbreak may mitigate energy industry concerns while also complicating China’s ability to comply with its purchase plans.A number of senior Trump administration officials have over the past week said that the virus outbreak will at the very least delay China’s ability to live up to the terms of the buying spree promised in the trade deal. Even then, China hasn’t notified the U.S. that it’s unable to meet its commitments, according to a U.S. agriculture department official Wednesday.Analysts and markets were already skeptical over the deal and the $200 billion in additional purchases of everything from airplanes to crude oil and soybeans that is its centerpiece. Trump has himself said that his own advisers have counseled him that some of the commitments he sought from the Chinese were unrealistic and boasted of his own role in setting higher targets.At the signing ceremony for the deal last month he recounted how he had overruled his own advisers after they agreed to an additional $20 billion in purchases of farm products.“So our people agreed to $20 [billion], and I said, ‘No, make it $50 billion. What difference does it make? Make it $50 billion,” Trump said. “They say, ‘Sir, our farmers can’t produce that much.’ I said, ‘I love our farmers. Let them tell me they can’t do it.’ And I said, ‘Tell them to go out and buy a larger tractor. Buy a little more land.”’(Updates with context in 10th and 15th paragraphs)\--With assistance from Stephen Cunningham and Jasmine Ng.To contact the reporters on this story: Jennifer A. Dlouhy in Washington at jdlouhy1@bloomberg.net;Shawn Donnan in Washington at sdonnan@bloomberg.net;Nick Wadhams in Washington at nwadhams@bloomberg.netTo contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, Jason RogersFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.

  • Some Companies Are Getting Close To Curing Cancer

    Some Companies Are Getting Close To Curing Cancer

    A new form of drug drastically improves survival rates of younger women with the most common type of breast cancer.

  • Tesla Plans?$2 Billion Offering as Elon Musk Seizes on Stock Surge

    Tesla Plans?$2 Billion Offering as Elon Musk Seizes on Stock Surge

    (Bloomberg) -- Tesla Inc. plans to offer about $2 billion of common stock as Elon Musk takes advantage of the electric-car maker’s surging shares.Assuming underwriters exercise their option to purchase additional securities, the offering could bring in about $2.3 billion in proceeds, Tesla said in a statement. Less than an hour earlier, the company forecast as much as $3.5 billion in capital expenditures this year, as Musk rushes to bring new models to market, ramp up its first overseas assembly plant and start building another.Tesla shares fell as much as 7.2% after announcing the offering and traded down 3.9% to $737.50 as of 8:30 a.m. Thursday in New York, before the start of regular trading. The stock had more than tripled since the company released the first of two straight positive earnings reports in October.Musk, Tesla’s chief executive officer, has expensive plans for the coming years. After breaking ground on a factory near Shanghai in January 2019 and handing over the first sedans assembled there to employees before year end, he’s now planning another quick construction of a plant near Berlin and wants to begin production next year. He’s sped up the introduction of his latest product, the Model Y crossover, to this quarter.Tesla will use proceeds from the offering to strengthen its balance sheet and for general corporate purposes. The expected trading date for the shares is said to be Friday.Musk’s TurnaboutThe high end of Tesla’s 2020 expenditures projection, issued in its 10-K filing, represents a 164% increase from 2019, when stingy spending helped conserve cash. The $1.33 billion spent last year was well below its initial plan for as much as $2.5 billion.The offering is a sudden turnabout by Musk, 48, who told analysts two weeks ago that Tesla wouldn’t need to raise capital. The company was spending sensibly and not holding back on expenditures in ways that would limit progress, he said.“So in light of that, it doesn’t make sense to raise money because we expect to generate cash despite this growth level,” Musk said.In its 10-K filing, Tesla disclosed that the U.S. Securities and Exchange Commission closed its investigations into statements that Musk made in the fall of 2018 about taking the company private, as well as his prior predictions about Model 3 production rates.But on Dec. 4, the same day it closed those investigations, the SEC also issued Tesla a subpoena seeking information “concerning certain financial data and contracts,” including regular financing arrangements, the company said.(Updates with upcoming plans in fourth paragraph.)\--With assistance from Drew Singer.To contact the reporters on this story: Dana Hull in San Francisco at dhull12@bloomberg.net;Gabrielle Coppola in New York at gcoppola@bloomberg.net;Ed Ludlow in San Francisco at eludlow2@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, David WelchFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.

  • Piper Sandler: These 3 High-Yield Dividend Stocks Have Plenty of Growth Ahead

    Piper Sandler: These 3 High-Yield Dividend Stocks Have Plenty of Growth Ahead

    Markets started 2020 with a 5% gain on the S&P 500. It's a fine cap to start the year, but will it last? Not so sure; Wall Street is predicting a far more modest run in 2020, with the end-year targets averaging just a 2% gain.The outlook reflects relative risk assessment, rather than depression. With the coronavirus outbreak, and a US Presidential election just nine months away, 2020 is starting out with plenty of uncertainty on the horizon.That uncertainty has investors worried, and when investors get worried they look for a safety net in their investment strategy. It’s a draw that naturally pulls them to dividend stocks. Dividend stocks don’t offer the same high share appreciation as growth stocks, but they do offer a steady income stream. And when markets a volatile, a steady income stream is a hot commodity.With this in mind, analysts from Minnesota-based investment firm Piper Sandler have tagged three energy stocks as particularly noteworthy, offering investors a valuable combination of high dividends, and even higher upsides. Using the Stock Comparison tool from TipRanks, we can look at these three tickers, side by side, comparing their attributes. All are Buy-rated with dividend payouts exceeding 5%, and show an upside between 20% and 45%.Black Stone Minerals (BSM)We’ll start with Black Stone, a Houston-based oil and gas exploration and development company. Black Stone controls over 20 million acres across 40 states, but the bulk of its operations are in the South (Alabama-Mississippi, Louisiana-Arkansas, Texas-Oklahoma) and the Northern Plains (Montana-North Dakota). The company also has a presence in the Appalachian gas fields of Pennsylvania and West Virginia.Black Stone’s ability to continue making money in the current environment was clear in the last quarterly report. The company beat the earnings forecast by 10%, reporting 32 cents per share on revenues of $137.4 million. The free cash flow reached $89.2 million, marking the fifth quarter in a row of FCF gains. BSM reports Q4 2019 on February 24 and is expected to show 26 cents EPS.Investors should note the rising FCF. Black Stone has used that money, at least in part, to fund a high dividend. The company pays out 30 cents per share quarterly, or $1.20 annually, which may not sound like much but the yield is impressive at 11.4%. That’s almost 6 times the average yield among S&P companies. The payout ratio is 93%, indicating that BSM pays back most of its profits to shareholders and that the payment is sustainable in current conditions.Piper Sandler analyst Pearce Hammond looks at BSM in the context of the gas industry generally, and draws a bullish conclusion. He writes, “While natural gas headwinds might intensify further in coming months, we believe this negativity is largely reflected in the unit price and there is a favorable risk/reward tradeoff... Most important, nothing cures low prices like low prices, and we expect declining natural gas drilling combined with further demand growth to result in improving natural gas s/d fundamentals over the next twelve months.”In short, Hammond sees BSM in position to grow this year, and puts an $18 price target behind his Buy rating. That target indicates a 75% upside potential. (To watch Hammond’s track record, click here)Black Stone’s Moderate Buy consensus rating is derived from 2 recent Buy reviews and 3 Holds. Opinions are mixed on this stock, but note that even the low-ball price target estimate is higher than the current share price. The average target, $14.90, suggests room for 45% upside growth. (See Black Stone stock analysis on TipRanks)BP PLC (BP)Our next stock is a $123 billion staple of the oil industry, BP. This is the sixth largest oil and gas company globally, and brought in over $300 billion in calendar 2018 revenues. The low prices plaguing the industry through 2019 pushed hard on the bottom line, however, and BP’s 2019 profits were down 21%.At the same time, despite the slip, the $10 billion profit reported beat the forecast of $9.7 billion. Looking ahead, there are indications that production cuts by OPEC in the range of 500,000 barrels per day could help improve the supply-demand situation in 2020. Should OPEC be successful in its moves to push prices back toward $60 per barrel, companies like BP would see immediate gains. That would be a welcome change from the 13% price drop in Brent crude over the past 12 months.Despite the low prices and decline in profits, BP has maintained its dividend. The company announced a 63-cent quarterly payment this month, making the annual payout $2.52 and the yield a strong 6.6%. BP has been raising the dividend payment modestly over the past 4 years.Writing on the stock after the earnings report, Piper Sandler's Ryan Todd reiterated his $47 price target and Buy rating. He was particularly impressed by the dividend, writing, “…while 2020 guidance was largely in line, capex again at the low end of the guided range combined with success to date on disposals should set the stage for a coming ramp in shareholder distributions… the [dividend] raise was modest, [and] represents the second sequential (annual) bump to the dividend and management’s commitment to growing shareholder distributions going forward.”Todd’s price target suggests a 26% upside to BP shares. (To watch Todd’s track record, click here)BP is another Moderate Buy, according to the analyst consensus view. The stock has received 2 Buy ratings and 1 Hold in recent weeks. Shares are priced at $36.54, and the average target of $45 implies an upside of 23%. (See BP stock analysis on TipRanks)Total SA (TOT)Our final stock on the list, like BP, is a ‘Supermajor,’ one of the few giant companies that collectively are called “Big Oil.” Total has a $128 billion market cap, brings in some $200 billion in annual revenue, and sees more than $11 billion in net profit.Where BP has been facing lower quarterly earnings, TOT’s quarterlies are rising. In Q4, the company saw $1.19 EPS, for a 1% year-over-gain and a 5% sequential gain. The rising earnings came even as total revenues slipped. The top-line number was down 6% year-over-year, to $49.3 billion another indication of the impact low prices have on the sector.Total’s oil production in the fourth quarter was 3.113 billion barrels per day, up 8% from the year before, while gas production showed a 4% gain to 7.264 billion cubic feet. The company saw an 8% decrease in realized oil prices, and a 25% drop in gas prices, over the course of 2019. Total ended Q4 2019 with $27.4 billion cash on hand, essentially flat year-over-year.The company has been using its cash to boost shares, with a $1.75 billion share buyback in 2019. Going forward, management expects to buy back $2 billion worth of shares in 2020. These buybacks are part of a planned program, in place for the 2018 to 2020 time horizon, totaling $5 billion.Along with share buybacks, TOT pays out a reliable quarterly dividend. The annualized payment, at $2.93, makes the yield 5.99%. For investors, the best feature of the dividend is the payout ratio. At 51%, it’s high enough to show a company commitment to paying back shareholders, while not so high to spark worries about sustainability.Analyst Ryan Todd, quoted above on BP, also reviewed TOT. He believes that this company is the best option for investors looking for an oil play, writing, “While not immune to macro headwinds, the combination of above average production growth and high-margin project starts managed to hold earnings flat YoY in a peer group showing material declines outperformance that we expect to continue in 2020. We continue to view Total as best positioned to support both top-line growth and upside to growing shareholder returns.”Todd reiterated his Buy rating on the stock, and set a $68 price target. His target suggests a robust 36% upside for Total over the coming 12 months.TOT is the only stock in this list with a Strong Buy analyst consensus. This rating is based on 4 Buys and 1 Hold set recently. The stock is trading at $49.81, and the average price target of $67.31 indicates room for 30% upside growth potential. (See TOT stock analysis on TipRanks)

  • Zoetis Tops Fourth-Quarter Views, But Slips On 2020 Earnings Forecast
    Investor's Business Daily

    Zoetis Tops Fourth-Quarter Views, But Slips On 2020 Earnings Forecast

    Zoetis stock dipped Thursday after adjusted Zoetis earnings of 92 cents per share on $1.67 billion in sales beat expectations. Zoetis, a pharma company, is an animal-health expert.

  • TheStreet.com

    Aurora Cannabis Issues Second-Quarter Results but Doesn't Disclose Expected Loss

    Aurora Cannabis issues its results for its second quarter but makes no mention of expected losses in the period.

  • California Man Makes $2.8M Trading From Home

    California Man Makes $2.8M Trading From Home

    Kyle Dennis was $80K in debt when he decided to invest every penny to his name in the stock market — $2.8M later, he owes his success to 1 strategy

  • Barrons.com

    Cisco Beat Earnings Forecasts. Why It’s Stock Is Dropping.

    The company reported revenue of $12 billion, down 4%, which is right in the middle of its guidance range of down 3% to 5%. Adjusted earnings per share were 77 cents, at the high end of the guidance range of 75 cents to 77 cents.

  • Six High Dividend Stocks You Can Count On
    Investor's Business Daily

    Six High Dividend Stocks You Can Count On

    High-dividend stocks can be misleading. Here's a smart way to find stable stocks with high dividends. Watch these nine dividend payers on IBD's radar.

  • Retirement plans: 401(k) and IRA millionaires at Fidelity hits a record in the fourth quarter

    Retirement plans: 401(k) and IRA millionaires at Fidelity hits a record in the fourth quarter

    The number of investors with at least $1 million in their 401(k) accounts?hit a record 233,000 in the fourth quarter, according to Fidelity.

  • Wiping out the nation’s student-loan debt could have unintended financial consequences for borrowers

    Wiping out the nation’s student-loan debt could have unintended financial consequences for borrowers

    There could be side effects to Elizabeth Warren’s and Bernie Sanders’s student loan cancellation proposals, including higher tax bills for some borrowers — but the candidates say they’ll address those potential pitfalls.

  • Kraft Heinz takes $666 million charge, misses sales expectations

    Kraft Heinz takes $666 million charge, misses sales expectations

    Kraft Heinz Co on Thursday missed quarterly sales estimates due to lower demand for products like bacon and cheese, and wrote down the value of some businesses - including coffee brand Maxwell House - by $666 million. Kraft Heinz's sales have been muted for fourteen straight quarters as consumers turn to cheaper private label brands, online shopping and fashionable, non-processed and organic food. Thursday's results mark the one-year anniversary of Kraft Heinz reporting a surprise loss and taking a $15.4 billion writedown of key brands - a move that rocked the consumer goods industry and led to the ousting of former Chief Executive Bernardo Hees and several other executives.

  • Barrons.com

    Tesla Is Selling More Stock, Discloses Subpoena From the SEC

    Electric vehicle pioneer Tesla filed its annual report Thursday. There is a lot for investors to digest.

  • Aurora Cannabis Sees Flat Revenue After Overhaul, Growth Warning
    Investor's Business Daily

    Aurora Cannabis Sees Flat Revenue After Overhaul, Growth Warning

    Aurora Cannabis reported lower revenue and deepening losses, a week after announcing its CEO's departure, layoffs and steep write-downs.

  • Kraft Heinz beats earnings expectations amid big turnaround push
    Yahoo Finance

    Kraft Heinz beats earnings expectations amid big turnaround push

    Kraft Heinz reported earnings that beat Wall Street expectations, while revenue fell short during its fourth quarter.

  • Man Who Predicted Rise of AMZN Has New Prediction

    Man Who Predicted Rise of AMZN Has New Prediction

    He called the bottom of stocks in 2009, and recommended Amazon before it went on to soar 1,500%. Now he has a surprising new prediction for 2020.

  • Benzinga

    7 Cannabis Stocks To Buy, Sell And Hold

    After a brutal year in 2019, cannabis stocks are off to another rough start so far in 2020. Growth in the Canadian market hasn’t been as robust as previously expected, little progress has been made toward U.S. federal legalization and heavy losses are putting several top cannabis stocks in financial stress. The long-term bull case for cannabis is still intact, but investors may need to continue to be cautious in the cannabis space this year to separate the stocks to buy on the dip and the ones to avoid at all costs.

  • This one change can improve your retirement wealth by 50%

    This one change can improve your retirement wealth by 50%

    This truth is already widely known in fields other than retirement finance, of course. A famous example comes from Dan Ariely, a professor psychology and behavioral economics at Duke University: Participation in organ donation programs varies widely according to how the question is worded. New research has found something similar when it comes to retirement finance.

  • T-Mobile Parent Is Said to Seek New Terms for Sprint Deal

    T-Mobile Parent Is Said to Seek New Terms for Sprint Deal

    (Bloomberg) -- Deutsche Telekom AG wants to renegotiate the terms for the sale of Sprint Corp. to its U.S. wireless unit T-Mobile US Inc., according to people familiar with the matter.The German carrier, the majority owner of T-Mobile, is seeking a lower price because Sprint’s shares have been trading below their level when the deal was proposed in 2018, said the people, who asked not to be identified as the deliberations are private.Getting one of the biggest U.S. wireless mergers ever over the finish line would be a boon to both companies. For Deutsche Telekom, the deal reduces its reliance on Europe, where carriers are struggling to grow amid fierce competition. For the chairman of Sprint owner SoftBank Group Corp., Masayoshi Son, it allows him to better focus on his technology investments and the $100 billion Vision Fund. The renegotiation talks are expected to start soon, the people said. They would follow a victory for the companies in a U.S. court this week, when a federal judge rejected a state lawsuit against the tie-up. Now the deal is in the home stretch, with only minor approvals left to secure and final financial terms to be ironed out. SoftBank declined to comment. Deutsche Telekom didn’t immediately return a call seeking comment.Deutsche Telekom shares fell 1.4% in Frankfurt as of 12:58 p.m. on Thursday. What Bloomberg Intelligence Says:Deutsche Telekom has limited leverage to renegotiate the terms of its Sprint acquisition, we think, even as the valuation of the latter jumped to $75 billion from $60 billion in 2018 under the deal terms, despite worsening operational performance. The allure of consolidation, including the acquisition of an attractive spectrum portfolio, suggests only a modest potential improvement in stock-exchange ratio.\-- Erhan Gurses, BI telecoms analystClick here for the researchFrequency ConstraintsWhile Sprint’s standalone value has dropped, SoftBank also sees itself in a good position because T-Mobile needs Sprint’s wireless frequencies or would face capacity constraints within as little as two years, one of the people said.T-Mobile’s importance for Deutsche Telekom has grown steadily in recent years and it now accounts for about half of group sales, up from around a third in 2014. T-Mobile and Sprint haven’t renewed the merger agreement since it lapsed on Nov. 1, and there have been discussions regarding several issues that T-Mobile Chief Executive Officer John Legere described as “not hostile” that month on an investor call. T-Mobile has suggested there could be new terms.The combined company, which will operate under the T-Mobile name, will have a regular monthly subscriber base of about 80 million -- in the same league as AT&T Inc., which has 75 million subscribers, and Verizon Communications Inc., which has 114 million. T-Mobile will have more wireless frequencies than any other U.S. carrier, giving it an advantage as the industry transitions to the next generation of wireless technology, the much-faster 5G standard.Bloomberg News reported Wednesday that Sprint and SoftBank would likely have to accept a lower price than when the merger agreement was first forged in April 2018. Sprint’s monthly churn -- a closely watched measure of how many customers leave -- has risen to nearly 2%, which means roughly a quarter of its subscriber base is quitting the carrier each year.The German company is likely to leverage that to negotiate a lower price, but Sprint also has valuable radio frequency spectrum without which T-Mobile US will face serious bottlenecks, a person familiar with the matter told Bloomberg on Wednesday.The Financial Times previously reported that Deutsche Telekom is pushing to renegotiate terms of the deal, citing unidentified people familiar with the matter.(Updates with analyst comment in fifth paragraph)\--With assistance from Stefan Nicola.To contact the reporters on this story: Pavel Alpeyev in Tokyo at palpeyev@bloomberg.net;Scott Moritz in New York at smoritz6@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Thomas Pfeiffer, Jennifer RyanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.

  • Bloomberg

    Alibaba Warns Virus Is Having Broad Impact on Chinese Economy

    (Bloomberg) -- Alibaba Group Holding Ltd. warned that the coronavirus responsible for killing more than 1,300 in China is exerting a fundamental impact on the country’s consumers and merchants, and will hurt its revenue growth in the current quarter.Alibaba, the first major Chinese technology corporation to report results since the epidemic emerged in January, said the virus is undermining production in the economy because many workers can’t get to or perform their jobs. It’s also changed buying patterns with consumers pulling back on discretionary spending, including travel and restaurants.The Chinese e-commerce giant made the comments after reporting strong financial results for the quarter that ended in December. Revenue surged a better-than-expected 38% to 161.5 billion yuan ($23.1 billion), while net income rose 58% to 52.3 billion yuan.But Chief Executive Officer Daniel Zhang and Chief Financial Officer Maggie Wu were clear about the fallout from the deadly virus on employees, suppliers and merchants. Many merchants that work with the company have not been able to return to normal operations because of a shortage of employees.“The epidemic has negatively impacted the overall China economy, especially the retail and service sectors,” said Wu in a conference call after the results. “While demand for goods and services is there, the means of production in the economy has been hampered by the delayed opening of offices, factories and schools after the Lunar New Year’s holiday.”Asked about the affect on Alibaba, she voiced caution about giving estimates because it’s only halfway through the March quarter.“Overall revenue will be negatively impacted,” she said, adding that the hit to growth could be “significantly” negative.Zhang said that they are seeing relatively large changes in buying patterns. While food delivery is growing, areas like clothing and electronics are running into logistical problems. He warned that the core e-commerce business suffered a negative impact in the first two weeks after the holiday. Restaurant orders and travel bookings have also taken hits.“It will present near term challenges to Alibaba’s businesses across the board,” he said on the conference call, adding that there will also be opportunities.Alibaba is rolling out special programs to support merchants, including lowering the fees it charges and providing subsidies for delivery personnel. Zhang said the company is trying to keep its own staff safe, including having many work from home.“We took every effort to protect the safety of our employees,” he said.Zhang added that more workers are going back to work in Beijing, Guangzhou and Shenzhen. Many logistic companies are also recovering their capacity in the past 12 days.Alibaba shares slid about 3% in pre-market U.S. trading.Already, China’s most valuable corporation has struggled to sustain growth during an economic slowdown in its home market, and is now grappling also with the uncertainty of the coronavirus outbreak. While widespread home confinement is spurring demand for online services from grocery delivery to office apps to streaming entertainment, the disease is snarling nationwide transport and threatens in the long run to dent the consumer spending Alibaba depends on.The disruption to Alibaba’s business from the virus “may be worse than feared,” wrote Bloomberg Intelligence analysts Vey-Sern Ling and Tiffany Tam in a report. “Alibaba’s sales may contract in its core China retail marketplaces and local services business in the coming quarter even if the coronavirus outbreak subsides, as logistic and production disruptions faced by merchants could take time to resolve.”Read more: Tencent’s $127 Billion Rally Bolstered by Work-From-Home MassesThis week, the company declared a waiver of some service fees for merchants on its main direct-to-consumer Tmall platform to help those struggling with the fallout from the outbreak. That may further depress the top-line in 2020.Read more: Tencent, Alibaba Office Apps Find Fans in Virus-Affected SchoolsAlibaba has shed 1.4% of its value since a broader Chinese selloff began in January, underperforming arch-rival Tencent Holdings Ltd., which as a mobile gaming and social media operator is better shielded in the short run from the epidemic.Read more: Coronavirus Outbreak Drives Demand for China’s Online GrocersTo contact the reporters on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net;Kari Lindberg in Hong Kong at klindberg13@bloomberg.net;Zheping Huang in Hong Kong at zhuang245@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.

  • Heart Surgeon Boils Weight Loss Down to One Thing

    Heart Surgeon Boils Weight Loss Down to One Thing

    Celebrated surgeon and author of the New York Times best seller "The Plant Paradox" reveals what many have suspected for a long time, and even worse.

  • Dow Jones Futures Fall As Coronavirus Cases Spike: Alibaba Earnings Top, Tesla Stock Dives On Offering
    Investor's Business Daily

    Dow Jones Futures Fall As Coronavirus Cases Spike: Alibaba Earnings Top, Tesla Stock Dives On Offering

    Dow futures fell as coronavirus cases soared in China's Hubei province. Alibaba earnings topped, leading key earnings movers. Tesla stock dived on a $2 billion share offering.

  • Barrons.com

    Roku Reports Earnings Today. Here’s What to Expect.

    Roku will get a chance to remind investors of its growth narrative when it reports its 2019 earnings after the bell on Thursday.

  • Alibaba Earnings, Revenue Beat, But Stock Falls
    Investor's Business Daily

    Alibaba Earnings, Revenue Beat, But Stock Falls

    Alibaba earnings and revenue growth topped fiscal Q3 estimates early Thursday. But shares fell, in part due to a new spike in coronavirus cases.

  • MarketWatch

    PepsiCo profit inches past estimate as it increases dividend by 7%

    PepsiCo reported a sharp decline in fourth-quarter profit as the beverage and snack maker forecast earnings growth for 2020. PepsiCo said fourth-quarter net income fell to $1.77 billion, or $1.26 a share, from $6.85 billion, or $4.83 a share, after seeing a big tax boost in the year-earlier quarter. Revenue rose 5.7% to $20.64 billion from $19.52 billion, and Pepsi said its organic revenue growth was 4.3%. Pepsi's core EPS of $1.45 a share was a penny ahead of the FactSet-compiled estimate of $1.44, and its revenue topped the $20.25 billion consensus. For 2020, PepsiCo expects 7% growth in adjusted EPS and 4% organic revenue growth. PepsiCo said it's increasing its dividend by 7% to $4.09 a share as total cash returns to shareholders is estimated to be $7.5 billion, with $5.5 billion coming from dividends and $2 billion from stock buybacks.

  • 1 Vegetable That Destroys You From The Inside

    1 Vegetable That Destroys You From The Inside

    Leading Gut Health Expert & frequent guest of Dr. Oz and Good Morning America is begging we all change this one thing

  • What To Expect From Nvidia's Fourth-Quarter Earnings Report
    Investor's Business Daily

    What To Expect From Nvidia's Fourth-Quarter Earnings Report

    Graphics-chip maker Nvidia plans to report fiscal fourth-quarter results late Thursday. Here’s what Wall Street expects from the Nvidia earnings report and how it could impact NVDA stock.

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