Today we are watching…
1. Alibaba (#baba)
Some investors think China’s number one e-commerce conglomerate, Alibaba, is spring-loaded with catalysts to beat earnings expectations today. The trade war hasn’t held it back thus far, beating estimates 88% of the time in the past two years, and a nearing Hong Kong listing has attracted more bulls! You can buy practically anything on Alibaba, and with Chinese consumer spending looking robust, the platform is growing like wildfire. Analysts are holding out for $1.49 in profit per share on $16.8 billion in revenue. Can Alibaba make up the numbers without Jack Ma at the helm this quarter?
2. Amgen (#amgen)
Amgen is an immense biopharmaceutical company, started from a small office in Thousand Oaks, California. “For a number of years,” however, the company’s chief financial officer has said the company wants to “build out its business globally.” Mission accomplished, it seems! The firm just bought a $2.7 billion stake in Chinese biotech firm, BioGene, ensuring investors get truly worldwide exposure. A 20% holding in BioGene has been amassed, with Amgen finding the cash to put up $174.85 per BioGene share. That’s a massive premium to their current value, which favors BioGene shareholders. However, there are also many investors going long on the American company, as deals are finalized to market Amgen products across China!