I think The Drop is an attempt to snatch Target customers. In particular, Bezos is trying to get future soccer moms; while their shopping habits are still forming. Bezos’ plan is to create a generation of women who only shop on Amazon for everything. Tellingly, the best book about Amazon is The Everything Store: Jeff Bezos and the Age of Amazon by Brad Stone.
Moreover, Wayfair is growing at a dramatic rate. Stockrow estimates Wayfair’s revenues grew by 35.17% in the quarter ending on 30 September 2019. However, that growth rate was down from 41.56% in the previous quarter.
Importantly, TJX is making a little more money. TJX’s quarterly revenues rose from $9.781 billion on 3 August 2019 to $10.451 billion on 2 November 2019, Ycharts estimates.
I think BOA’s revenues point to an interesting paradox in Fintech; the faster and more efficient Fintech gets, the less money it makes. Digital financial technology makes banks faster and more efficient but they make less money.
The number of PayPal accounts grew from 244 million in 2nd Quarter 2018 to 277 million in 1st Quarter 2019 to 286 million 2nd Quarter 2019, Statista estimates. Thus, PayPal gained nine million accounts in 1st Quarter 2019. Impressively, I estimate PayPal added 26 million accounts between 2nd Quarter 2018 and 2nd Quarter 2019. In addition, Statista estimates PayPal’s peer-to-peer (P2P) app Venmo had 40 million active accounts and a $24-billion net payment volume in 2nd Quarter 2019.
Some Amazon customers can pay utility bills using Amazon Pay with the help of fintech firm Paymentus’s Instant Payment Network (IPN), MarketWatch reports. Amazon claims customers in 95% of US ZIP codes could pay utility bills with Amazon Pay by 2020. Paymentus is a privately held fintech company that operates a bill pay service for PayPal (NASDAQ: PYPL). The fintech market growing fast, Stockrow reports PayPal’s revenues grew by 18.87% in the quarter ending on 30 September 2019.
The BAT creators bet that advertisers and marketers will pay for attention to get better information about consumers and advertising use. Advertisers lack good information because today’s advertising ecosystem is inefficient and prone to fraud.
In addition, the Gnosis team plans a new class of blockchain assets they call conditional tokens. I think the conditional tokens could be Ethereum Request for Content (ERC20) tokens that contain smart contracts linked to “conditional prediction markets.”
Interestingly, Alibaba’s income numbers are similar to Amazon’s. On 30 June 2019, Stockrow gives Amazon a quarterly net of $2.625 billion and an operating income of $3.084 billion. Hence, Alibaba’s income was slightly larger than Amazon’s income.
However, Baidu could have a 93.2% market share in the world’s second largest economy. Trading Economics estimates China had a gross domestic product (GDP) of $13.608 trillion in 2018. Plus, China had an annual GDP growth rate of 6.4% in 2019.
Disney and Target are partnering because they are facing the same aggressive, tech-savvy, and cash-rich competitor: Amazon. The hope is that Target and Disney can drive each other’s sales with synergy.
Retail apocalypse poster child GameStop (NYSE: GS) has an unlikely savior in the form of Big Short hero Michael Burry. Bizarrely, Burry’s investment firm Scion Asset Management admits to owning three million…