No Slowing Down Alibaba; Feeling Taxed: Google’s Italian Problem; Ads Abuzz for Super Bowl

What economic slowdown?

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China’s economy might be on the skids but apparently Chinese e-commerce giant Alibaba Group Holding Ltd. didn’t get the memo. The company released its earnings and reported that its sales rose 32% to $5.3 billion, easily beating analysts estimates of $5.13 billion. Alibaba even scored a profit of $1.93 billion, picking up 99 cents per share and beating predictions of 89 cents per share. The reason for these positively fabulous numbers have a lot do with insane revenues posted from November’s Singles’ Day. Singles’ Day saw 115 million buyers scooping up $14 billion in purchases. Alibaba CEO Jack Ma is also on a fiscal quest to bring China’s rural countryside onto the mobile shopping bandwagon and it’s been paying off royally.  Of course, shares of the stock rose in pre-market trading, just as they should. Alibaba needed the boost as its shares have declined 14% so far this year after falling back in 2015.  But then shares fell this morning by 2% (as did Yahoo since it owns a sizable chunk of it). Go figure. Ma’s grand plans for the company extend far beyond China and he would really love it if at least half of Alibaba’s revenue started flowing in from outside of China. Good thing he’s already got plans in motion to make that happen.

Google that…

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Image courtesy of iosphere/FreeDigitalPhotos.net

Authorities in Italy have set their investigative sights on Google charging that the tech giant evaded an estimated 327 million euros in taxes between 2009 and 2013. Of course, a Google spokesperson graciously noted that Google always pays its taxes wherever it operates and even explained how it paid 2.2 million euros in taxes on 54.4 million revenues back in 2014. Problem is Italian authorities aren’t buying it and estimate that Google’s revenues were ten times higher than what it reported. Italian authorities say Google basically redirected revenue to its regional offices in Ireland where the corporate tax rate is much more hospitable to big companies. Last week Google’s parent company Alphabet Inc. forked over $186 million to U.K. authorities for a different tax settlement. While that might seem a considerable sum, there was a huge outcry, particularly by those in Britain’s Labour Party, because they felt that the amount was way too small considering how much profit the company made. Incidentally, back in December, Apple had to settle with Italian tax authorities and ended up paying back 318 million euros.

Getting buzzed…

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Image courtesy of iosphere/FreeDigitalPhotos.net

With the Super Bowl just around the corner, some of the ads are already making for bigger stories than the game itself. Take for instance Death Wish Coffee. Never heard of it? You’re not the only one. The small business won a contest held by tech company, Intuit, and you’ll be able to catch the 30 second ad during the third quarter of Super Bowl 50. Death Wish Coffee began in 2012 by Mike Brown, who like so very many of us, was on the prowl for a very potent, caffeinated brew. As of now, Death Wish sells about 1,000 packages a day. But after the Super Bowl that number will likely skyrocket considering the 100 million-plus people expected to tune in to the big game. Death Wish Coffee will set you back about $20 a pound. But hey, that’s a small price to pay for the ultimate coffee fix, I suppose. And maybe by next year, Death Wish Coffee will actually able to afford the $5 million price tag for that coveted slot instead having to enter a contest to try and win it.

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