Who would have thunk it?
Powerhouse stock Alibaba, with its record-breaking $25 billion IPO, took a nasty beating today as it announced earnings that were less than impressive. Revenue did rise for the e-commerce giant, but not as much as expected, indicating growth slowed. In numbers that were nothing short of disappointing, revenue came in at $4.22 billion when estimates called for $4.45 billion. Its stock took an unwelcome drop to under $90 today – a major blow to a stock that had seen a high of $120 fairly recently and gets way more commerce action than both Amazon and eBay combined. Then there’s the Chinese government, who despite being fairly chummy (as rumor has it) with Alibaba, has been coming down hard on CEO Jack Ma and Co. for not doing their part, on behalf of consumer protection, to crack down on counterfeiters and false advertising. Government officials are even accusing Alibaba employees of taking bribes from some shifty merchants. With 50,000 merchants signed up with Alibaba, there are bound to be some bad eggs in there. In the meantime, Yahoo has decided to spin off its remaining Alibaba shares into a separate, publicly traded independent registered investment company aptly named…are you ready for this one? SpinCo.
Would you like some filet mignon with that chocolate bar?
Hershey, as in my most favorite chocolate, that also happens to be my most favorite delectable migraine inducer, is adding some high-protein snack power to its confection arsenal. Krave Pure Foods, founded in 2009 by Jonathan Sebastiani, will now join Twizzlers and Almond Joy, among other brands, assuming its place in the Hershey family. Krave will be bringing with it a whole lotta beef jerky. No joke. Snack tastes are indeed shifting, my virtual friends. Those snacking tastes are shifting towards meatier, protein-infused foods and are proving to be quite a profitable industry – one that is growing at a double digit pace. Fiscal rumors have it that Krave pulled in $35 million in sales this past year. Other fiscal rumors report that Hershey paid between $200 – $300 million for Krave. So what better way for Hershey to boost its sagging sales then adding some new beefier selections that Krave just happens to offer up. Hershey net sales did go up by 2.7%, which is good. Just not good enough. Analysts expected $2.01 billion in sales, but Hershey only managed to come in at $2.01 billion. Happy snacking!
It just keeps getting better and better and…
Social media giant Facebook had yet another stellar quarter, once again pummeling expectations. Some of that fourth quarter magic is due in large part because of Facebook’s focus shift into the mobile arena, and all the ad revenue its racking up there. In fact, 2/3 of the social media company’s ad revenue came from the wonderful world of ads sending revenue up 53% to $3.59 billion. And who doesn’t like revenue numbers like that? Facebook pulled in $701 million in profit and $0.25 a share when last year it pulled in $523 million and $0.20 per share – and yes, that was a good quarter last year too. The company even gained 13% more monthly active users and now stands at 1.4 billion people who soak up the joys of Facebook.