Diamonds and Dogs
Alibaba Group Holding Ltd (BABA) trading higher following earnings. China's biggest e-commerce giant is up 3% after missing earnings estimates. Investments in its food delivery business hurt earnings and would continue to weigh on profits. The company said it had formed a holding company for local services and food delivery firms Ele.me and Koubei, for which it had received over $3 billion in new investment commitments, including from SoftBank Group Corp. Revenue rose an impressive 61 percent to 80.9 billion yuan ($11.77 billion) ahead of estimates. Annual active consumers on the company's China retail marketplaces reached 576 million, an increase of 24 million from the 12-month period ended March 31, 2018. Alibaba saw no impact on business from tariffs, trends are pretty consistent, averaging 50% organic growth in recent quarters. RBC upgraded the stock with a $220 target.
Shares of L Brands (LB) is down 10%, hitting a seven-year low on Thursday after the parent of Victoria's Secret cut its full-year earnings forecast, blaming falling demand for its Pink line of lingerie. The outlook cut hinted that PINK could be going down the same road as Victoria's Secret, which has been losing customers as more women shift to cheaper barrettes and sports bras from companies such as American Eagle Outfitter's , Aerie. Pink was launched in 2002, targeting younger customers that the more high-end Victoria's Secret, known for its splashy fashion shows and winged models, was failing to attract. L Brands also said Pink Chief Executive Officer Denise Landman would retire at the end of the year and would be replaced by Bath & Body Works executive Amy Hauk.