Notable open interest changes for July 27th » 08:5507/2707/27/21
TSLA, GE, DIDI, JD
Monday's total option volume of 30.9 million contracts resulted in net open interest growth of 4.60 million calls and 3.00 million puts. Tesla (TSLA), General Electric (GE), DiDi Global (DIDI) and JD.com (JD) saw the greatest growth. Top five new positions opened include 45k Snap Inc. (SNAP) Aug-21 58 puts, 41k DiDi Global (DIDI) Aug-21 5 puts, 32k General Electric (GE) Aug-21 11 puts, 32k New Oriental Education (EDU) Aug-21 5 calls and 24k Energy Transfer (ET) Aug-21 11 calls.
Mizuho says China's education crackdown won't carry over to other sectors » 07:0407/2707/27/21
BABA, BIDU, JD, TCOM, TCEHY
Mizuho analyst James Lee…
Mizuho analyst James Lee says that while regulation of China's online education sector "clearly has a broader impact than in the past," the education vertical is an exception as it may be directly contradicting the government's ongoing plan of implementing the three-child policy. The analyst does not expect the same magnitude of regulatory impact to carry over to other segments in China such as e-commerce, advertising and entertainment that support economic and consumption growth. With sentiment and estimates "reaching a trough," the China internet secular growth story "remains intact, considering that past industry reforms did not meaningfully impact the overall trajectory," Lee tells investors in a research note. The analyst keeps Buy ratings on Alibaba (BABA), Baidu (BIDU), JD.com (JD) and Trip.com Group (TCOM) and a Neutral rating on Tencent (TCEHY).
Dada ramps up autonomous delivery expansion in JD Logistics partnership » 05:3307/2707/27/21
Dada Group (DADA)…
Dada Group (DADA) announced that it is set to advance an autonomous delivery operation open system, which has already been adopted by Seven Fresh and Yonghui Supermarket to normalize the scalable use of unmanned delivery vehicles for on-demand delivery service. Teaming up with JD Logistics (JD) and autonomous delivery vehicle developer White Rhino, Dada Group will jointly establish the autonomous delivery ecosystem in the supermarket scenario.
JD.com downgraded to Sell from Buy at DZ Bank » 05:0907/2707/27/21
DZ Bank analyst Manuel…
DZ Bank analyst Manuel Muehl downgraded JD.com to Sell from Buy with a $62 price target.
|Over a week ago|
Baidu should be bought into results, says Mizuho » 06:4407/2207/22/21
BIDU, JD, TCOM
Mizuho analyst James Lee…
Mizuho analyst James Lee recommends buying Baidu (BIDU) into the quarter due to expected relative strength, and he would be buyers on weakness in the shares of JD.com (JD) and Trip.com Group (TCOM) on potential downward estimate revisions. Historical case studies indicate regulatory actions on the China internet companies are transitory, Lee tells investors in a research note.
Fly Intel: Top five weekend stock stories » 20:1207/1807/18/21
FB, JNJ, BABA, JD, YUMC, T, AMRS, ZY, SRNG, ASO, SAP
Catch up on the…
Catch up on the weekend's top five stories with this list compiled by The Fly: 1. Johnson & Johnson (JNJ) is exploring a plan to offload liabilities from widespread Baby Powder litigation into a newly created business that would then seek bankruptcy protection, Reuters' Mike Spector, Jessica DiNapoli, and Dan Levine reported, citing seven people familiar with the matter. J&J has not yet decided whether to pursue the bankruptcy plan and could ultimately abandon the idea, some of the people said. 2. Facebook (FB) fired back after President Biden earlier said that social media platforms are "killing people" by allowing COVID-19 vaccine misinformation on their sites, Axios' Gigi Sukin reported. "We will not be distracted by accusations which aren't supported by the facts," a spokesperson for the tech giant said in a statement. 3. The latest cloud looming over U.S.-listed Chinese companies is uncertainty around how U.S. regulators will enforce last year's Holding Foreign Companies Accountable Act, which requires foreign companies to adhere to U.S. auditing standards in order to trade on U.S. exchanges, Reshma Kapadia wrote in this week's edition of Barron's. The Chinese government has long prevented Chinese companies from providing the necessary information to comply with U.S. auditing requirements, the author noted. Many large Chinese companies, including Alibaba Group (BABA), JD.com (JD), and Yum China (YUMC) have sought secondary listings closer to home, and many U.S. fund managers have shifted into those listings, the publication added. 4. AT&T (T) subsidiary Warner Bros.' "Space Jam: A New Legacy" won this weekend's domestic box office with a better-than-expected debut of $31.7M from 3,956 locations. Overseas, the movie opened to $23M from 64 territories for a global start of $54.7M as numerous markets are still impacted by the pandemic. The live-action/animated film is also available on HBO Max. 5. Amyris (AMRS), Zymergen (ZY), Ginkgo Bioworks - which is merging with Eagle Acquisition (SRNG) -, Academy Sports and Outdoors (ASO), and SAP (SAP) saw positive mentions in this week's edition of Barron's.
Some China stocks could vanish from the U.S., Barron's says » 08:3107/1707/17/21
BABA, JD, YUMC
The latest cloud looming…
The latest cloud looming over U.S.-listed Chinese companies is uncertainty around how U.S. regulators will enforce last year's Holding Foreign Companies Accountable Act, which requires foreign companies to adhere to U.S. auditing standards in order to trade on U.S. exchanges, Reshma Kapadia writes in this week's edition of Barron's. The Chinese government has long prevented Chinese companies from providing the necessary information to comply with U.S. auditing requirements, the author notes. Many large Chinese companies, including Alibaba Group (BABA), JD.com (JD), and Yum China (YUMC) have sought secondary listings closer to home, and many U.S. fund managers have shifted into those listings, the publication adds. Reference Link
Beyond Meat launches e-commerce store in China via JD.com » 10:1307/1507/15/21
Beyond Meat (BYND)…
Beyond Meat (BYND) announced the launch of a new ecommerce site on China's JD.com (JD). "This new online store is Beyond Meat's first e-commerce channel in China, and will offer a variety of its delicious and nutritious plant-based products like Beyond Beef, the Beyond Burger and Beyond Pork in Beijing, Shanghai, Guangzhou and Shenzhen, with plans to expand to 300 cities in the country. The opening of the store also marks the first time that consumers can directly purchase Beyond Pork, a savory and sumptuous product that was created exclusively for the Chinese market," the company said in a statement. Shares of Beyond Meat are up 3% to $131.98 in morning trading.
JD.com price target lowered to $95 from $100 at Arete » 05:3507/1307/13/21
Arete analyst Richard…
Arete analyst Richard Kramer lowered the firm's price target on JD.com to $95 from $100 and keeps a Buy rating on the shares. The analyst sees no end in sight for the increasing regulatory overhang on Chinese internet stocks. Companies are still exposed to "incremental risk around the data privacy law," and the next phase will focus on how firms reform practices or how the Chinese government enforces regulations, Kramer tells investors in a research note. The analyst sees this having a "major impact" on the monetization of Tencent and Alibaba investments.
Fly Intel: Top five weekend stock stories » 20:0507/1107/11/21
SPCE, MSFT, DIS, BABA, JD, C, MBUU, AZN
Catch up on the…
Catch up on the weekend's top five stories with this list compiled by The Fly: 1. Virgin Galactic (SPCE) announced that VSS Unity "successfully" reached space, completing the company's fourth rocket-powered spaceflight. This flight was the 22nd test flight of VSS Unity and the first test flight with a full crew in the cabin, including the company's founder, Sir Richard Branson. The crew fulfilled a number of test objectives related to the cabin and customer experience, including evaluating the commercial customer cabin, the views of Earth from space, the conditions for conducting research and the effectiveness of the five-day pre-flight training program at Spaceport America. VSS Unity achieved a speed of Mach 3 after being released from the mothership, VMS Eve. The vehicle reached space, at an altitude of 53.5 miles, before gliding smoothly to a runway landing at Spaceport America. 2. Microsoft (MSFT) has agreed to acquire RiskIQ, a security software maker, as the tech giant tries to expand its products and better protect customers amid a rising tide of global cyberattacks, Bloomberg's Katie Roof and Dina Bass reported, citing people familiar with the matter. The deal will be announced as soon as the next few days, the people said. Microsoft will pay more than $500 million in cash for the company, one of the sources said. 3. A wave of regulatory measures has created the type of uncertainty that draws bargain hunters, Reshma Kapadia wrote in this week's edition of Barron's. Technology giants like Alibaba Group (BABA), whose shares are down 11% this year, are popping up on value managers' radars. But caution is warranted, especially for investors in U.S.-listed shares of Chinese companies, the author noted, adding that regulatory pressures could continue. Alibaba and other internet companies, including JD.com (JD), are cheap enough to attract value investors. But volatility is likely, with investors recalibrating growth expectations as Beijing rolls out new rules, and reviews past deals, the publication said. 4. "Black Widow" set a new benchmark for the pandemic era in opening to $80M at the U.S. box office. Disney (DIS) said that the Marvel Studios' movie debuted to an estimated total of more than $215M globally this weekend, including $80M in domestic box office, $78M in international box office, and over $60M in Disney+ Premier Access consumer spend globally. The movie is the largest domestic box office opening since the COVID-19 pandemic began and the largest domestic opening weekend since "Star Wars Episode IX: The Rise of Skywalker" in December 2019. The combined theatrical and Disney+ Premier Access opening makes "Black Widow" the only film to surpass $100M in domestic consumer spend on opening weekend since the start of the pandemic. It is the highest domestic opening weekend for a Marvel Cinematic Universe origin story after "Black Panther" and "Captain Marvel." 5. Citigroup (C), Malibu Boats (MBUU), and AstraZeneca (AZN) saw a positive mention in this week's edition of Barron's.