Diamonds and Dogs
Alibaba (BABA) on fire. The Chinese online and mobile commerce company is up 4% to new highs following better than expected earnings. Revenue rose 56% to $7.40 billion ahead of estimates. Revenue from core commerce increased 58%, revenue from cloud computing increased 96% while revenue from digital media and entertainment increased 30%. Annual active consumers (formerly annual active buyers) on China retail marketplaces reached 466 million, an increase of 12 million from last year.
Victoria is no secret at L Brands (LB). The retailer best known for its Bath & Body Works and Victoria's Secret brands is down 9% to a new 52 week low following earnings and lower guidance for the rest of 2017 due to weak same-store sales comparisons. Victoria's Secret is not connecting with the younger customers as shoppers shift toward cheaper lingerie. Consumers are also skipping trips to the mall, instead spending more money on travel and technology than apparel.