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Market Cap of Five Ecommerce Giants Soared by 90% to $2.6T, JD.com Leads With a 215% YoY Growth

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The COVID-19 pandemic has affected every industry in the world but also accelerated many trends, and eCommerce might be one of the biggest.

Many retail platforms witnessed unprecedented traffic increase in 2020, surpassing even holiday season traffic peaks. The coronavirus-led boom in online sales caused a surge in revenues and market capitalization of the market’s biggest players.

According to data presented by Buy Shares, the market capitalization of Amazon, Alibaba Group, JD.com, eBay, and Rakuten, as the five largest eCommerce companies globally, hit almost $2.6trn in October, a 90% jump year-over-year.

Amazon and Alibaba Combined Market Cap Surged by $1.1T YoY

In September 2019, the combined market cap of the five eCommerce giants amounted to $1.38trn, revealed Yahoo Finance data. By the end of the year, this figure jumped to $1.58trn.

After a slight drop to $1.57trn in March, it rose to $2.1trn in June, a 33% increase since the beginning of 2020. In the next three months, this value jumped by $490bn, reaching almost $2.6trn in October.

Amazon witnessed an 83% increase in market capitalization year-over-year. In December 2019, the combined value of shares of the world’s leading eCommerce company hit $920bn. Over the next three months, this figure rose to $972bn, despite the stock market crash in March. In June, Amazon smashed through the one trillion benchmark and continued growing. Statistics show the retail and eCommerce giant`s market cap stood at $1.58trn in the last week of October, a $720bn increase year-over-year.

The company recently reported its better-than-expected third-quarter results, which revealed double-digit revenue growth. Amazon revenue spiked 37% YoY to $96.15bn between June and September, up from $92.7bn expected. Earnings per share hit $12.37, much more than $7.41 expected.

Alibaba Group, the world’s second-largest eCommerce company, witnessed a 90% growth in market cap, with the total value of shares rising from $436.1bn in September 2019 to $831.4bn in October.

The revenue of the Chinese tech giant jumped 30% YoY to $22.8bn in the third quarter of 2020, with adjusted EBITDA up 28% year-over-year. The number of active consumers on China retail marketplaces hit 757 million, 15 million up from the twelve months ended June 30.

Chief Financial Officer of Alibaba Group, Maggie Wu, said: “Our domestic core commerce business continued growing steadily during the post-COVID-19 environment in China through higher purchase frequency and consumer spending, while cloud computing revenue grew 60% year-over-year, driven by the acceleration in digitalization across all industries and businesses of all sizes in China.”

Statistics show the combined market cap of the two largest eCommerce companies globally stood at $2.4trn in October, a $1.1trn increase year-over-year.

JD.com Witnessed a 215% YoY Growth, the Biggest Increase in 2020

China’s largest online retailer by revenue, JD.com, reported rising profitability and sales growth in its first quarter of being listed on both Wall Street and in Hong Kong. In August, the company reported quarterly net profits of Rmb16bn ($2.3bn), up from Rmb600m a year ago. Revenue jumped 34% YoY to Rmb201bn, up from the Rmb191bn forecast by analysts. The annual buyers’ count also rose by 30% to 417 million, the most significant increase in two years.

JD.com also announced an investment of $830 million from private equity group Hillhouse Capital in its JD Health unit, which offers an online pharmacy and medical consultations.

In December 2019, the market capitalization of the Beijing-based company hit $51.7bn. In the next six months, this figure increased by 45% to almost $60bn. The noticeable upward trend continued in the following months, with the market cap soaring by 215% YoY to $129.6bn in October, the most significant increase among the top five companies.

As the fourth-largest eCommerce firm by market cap, eBay witnessed a 16% growth in a year, with the combined value of shares rising from $31.9bn in September 2019 to $37.2bn in October.

The market cap of Japanese eCommerce company Rakuten, the fifth-largest eCommerce giant on the list, rose by only 3% in this period reaching $13.7bn at the end of last month.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

E-commerce

Amazon Generates over $800,000 in Revenue per Minute, a 44% Increase in a Year

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Amazon

Online retail giant Amazon is one of the biggest beneficiaries of the coronavirus pandemic due to the high demand for online shopping. Consequently, the company has registered a staggering amount in revenue per minute.

Data acquired and calculated by Finbold indicates that the eCommerce firm generated $837,350 in revenue per minute for Q1 2021, representing a growth of 44.04% from the $582,200 recorded during the same period in 2020.

Among seven selected top tech companies, Apple (NASDAQ: AAPL) recorded the second-highest revenue per minute at $691,200, a drop of 1.96% from Q1 2020s $708,300. Google’s parent company Alphabet revenue per minute stands at $351,850, a 10.86% growth from last year’s $317,600.

As of Q1 2021, Microsoft revenue per minute was $321,840 an increase of 24.32% from $255,400 recorded during a similar period in 2020. Social media platform Facebook revenue per minute grew by 44.99% from Q1 2020s $20,193 to $136,900 for this year’s first quarter.

Elsewhere, electric vehicle manufacturer Tesla’s (NASDAQ: TSLA) revenue was $80,170 as of Q1 2021, to represent a growth of 71.42% from Q1 2020s $46,200. Lastly, streaming giant Netflix’s Q1 2021 revenue per minute was $55,250 a growth of 33.33% from last year’s $44,500.

Digital shift spurs growth in revenue per minutes

The report explains how the seven selected companies benefited from the coronavirus pandemic to record the high revenue per minute. According to the research report:

“The revenue for the companies shows the gains made during the coronavirus pandemic. The health crisis pushed more activities online and these companies were well-positioned to benefit as they sold services people needed. Big tech firms have earned a reputation of being in the right place at the right time. Notably, the pandemic accelerated digital transformation in education, health care, remote work, and e-commerce, boosting the companies profitability.”

With the tech companies dominating, questions on the market monopoly are still lingering.

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E-commerce

Amazon Web Services Quarterly Revenue Jumped by 32% YoY to $13.5B

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As one of Amazon’s strongest-growing business segments, Amazon Web Services witnessed a surge in revenue in the last year.

According to data presented by BuyShares, AWS generated cloud computing and hosting revenues of around $13.5bn in the first quarter of 2021, a 32% jump year-on-year.

AWS Annual Revenue Rose by 30% YoY Amid Pandemic

One of the most used ways for companies to utilize cloud computing is to take advantage of the various “as-a-service” options. These services provide business organizations with access to computing power, software, and other cloud-related functions without the need for in-house hardware.

Although cloud computing revenues had been increasing significantly even before the pandemic, the COVID-19 accelerated the growth of the entire sector as companies across the globe started searching for a way to secure business continuity amid the lockdown.

As the market leader, AWS had a tremendous role in that growth. In the first quarter of 2019, AWS quarterly revenue amounted to nearly $7.7bn, revealed the Amazon financial report. Over the next twelve months, this figure jumped by 33% YoY to $10.2bn in Q1 2020. Statistics show that AWS quarterly revenue continued growing throughout 2020 and hit $12.7bn in the last quarter of the year.

This figure increased by another $758 million in the next three months, with quarterly revenue rising to $13.5bn in the first quarter of 2021.

Statistics also show that AWS annual revenue jumped by 30% amid the pandemic, rising from $35bn in 2019 to $45.3bn in 2020.

80% of Business Organizations Use Amazon Web Services in 2021

According to the 2021 Flexera State of the Cloud Report, 50% of technical professionals from industries worldwide stated their organization was running a significant workload on Amazon Web Service. Another 30% said they were using AWS apps to some extent, while 13% were either experimenting or planning to utilize them in 2021.

Microsoft’s Azure ranked as the second most popular cloud platform service, with 76% of respondents running its applications. Google Cloud and Oracle Infrastructure Cloud followed, with 49% and 32% share of respondents, respectively.

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Fintech

Mauritanian Bank for International Trade Launches Digital Bank, Masrvi, Powered by TagPay

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Fintech - Investors King

The Mauritanian Bank for International Trade (BMCI) has partnered with TagPay to roll out its digital bank Masrvi, aimed at providing digital, value-added financial services to its customers.

Powered by TagPay, Masrvi was launched at the end of April and responds to Mauritanians’ banking needs by providing secure and accessible banking services, across the country through mobile networks, whilst offering convenience. Masrvi enables BMCI to provide its customers with secure, simple, fast, and easy-to-access banking products and services that can be tailored to their needs, all with a convenience that traditional banks cannot match.

Moulay Abbas, President of BMCI says: “By leveraging TagPay’s next-generation Core Banking System and their teams’ project expertise, we were able to launch our digital bank, Masrvi, in record time. Within a month of launching, we have a network of 52 branches and more than 200 partner-businesses that accept Masrvi and the numbers continue to grow. Thanks to the proven robustness, agility, and short time-to-market of this solution, we will be able to rapidly grow our customers. This will help strengthen Masrvi’s product line and enable us to offer a full range of banking and financial products in the very short term.”

Commenting on the successful launch of Masrvi, Yves Eonnet, CEO of TagPay said: “By using TagPay’s next-generation Core Banking System, the Masrvi solution is leveraging an innovative and intuitive technology platform that offers a full range of banking functions. Thanks to its open architecture, flexibility, and scalability, the solution will allow the rollout or update of features the digital bank wishes to market. Certainly, Masrvi will promote financial inclusion and integration in Mauritania.”

Anyone with a cell phone, regardless of their wireless carrier, can download the Masrvi application. This enables them to open a digital bank account and conduct several types of transactions such as withdrawing, depositing, and transferring money, paying bills and retailers, and recharging phone credit.

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