The figure that grabs all the headlines is gross merchandise value (GMV), which is the world’s most useless financial metric. An examination of the correlation between GMV and revenue shows that there isn’t one.
With so much of the Silicon Valley business model built on hopes (of big funding rounds) and dreams (of massive wealth), all it could take to disrupt the momentum is fear of a funding crunch.
Such a fast decline by two early adopters — Xiaomi and Meituan — doesn’t augur well for Hong Kong’s reputation. It already tried relaxing listing rules when it introduced the Growth Enterprise Market two decades ago.
Two hip, young startups are set to become the latest challenge to Tencent Holdings Ltd. just as China’s dominant social-media company struggles with shrinking margins and slowing growth.
Shares of SoftBank Group Corp. were down 13% in the two weeks to last Friday. Nvidia Corp., in which the Japanese technology company’s SoftBank Vision Fund is a major investor, plummeted 12.3% over the same period.
While Tencent is cutting the number of business groups to six from seven, the company is actually adding to its structure.
In its first earnings announcement since the Sept. 20 listing, the Chinese operator of food-delivery, ride-hailing and bike-rental businesses reported a blowout in its net loss for the first half.
If Oyo uses the recently secured $1 billion to run a tighter ship, there’s every chance it could be the world’s largest hotel chain within five years. If quality plays second fiddle to expansion, it risks becoming a brand name that’s of little value to anyone.
In a December press release, Mobike claimed 200 million users worldwide. Meituan’s prospectus says otherwise – 48.1 million Active Bike Users, 7.1 million Active Bikes and over 1 billion rides completed in the four months ended April 30, 2018.
Sea has made $91.4 million in revenue from its e-commerce unit since the final quarter of 2016, but spent $649 million to promote it.