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- Alibaba's Regulatory Overhaul
Good Morning!
Happy Friday! Have a great weekend:
👉Alibaba regulatory overhaul
👉Ulta earnings are in
👉 PCE numbers are in
ALIBABA: Regulatory Overhaul
Alibaba has completed a three-year regulatory overhaul following a $2.6 billion antitrust fine in 2021 for monopolistic practices. China’s market regulator, SAMR, announced that Alibaba has successfully aligned with antitrust rules, ending its controversial "choose one of two" policy restricting merchants to a single platform.
Source: Fox
This marks a significant step forward for Alibaba, easing one of its major regulatory challenges. Analysts view this as a positive development, signaling a new chapter for the company amid a broader shift in Beijing’s stance towards private tech firms. Despite these changes, Alibaba still faces slow growth and increased competition.
🎯GRIT TAKE: Alibaba is poised to be…upgrade to VIP now to read the full GRIT Take!
EARNINGS: Ulta
Ulta Beauty shares dropped 7% in after-hours trading Thursday after missing Q2 expectations and cutting its full-year outlook due to a decline in same-store sales. This marks the first missed earnings since 2020. Comparable sales fell 1.2%, missing Wall Street’s 1.2% growth forecast.
Source: CNBC
CEO Dave Kimbell attributed the decline to operational disruptions, cautious consumer spending, and increased competition. Ulta now expects full-year same-store sales to be flat or down 2%, with revenue between $11 billion and $11.2 billion, lower than previous forecasts. Despite a recent $266 million investment by Berkshire Hathaway, Ulta's shares have struggled, down 32% in 2024. The company is now focusing on expanding its loyalty program, enhancing digital experiences, and relaunching its beauty collection.
INFLATION: PCE Numbers
According to the Federal Reserve's preferred measure, inflation ticked up in July as the central bank considers its first interest rate cut in over four years. The Commerce Department reported that the personal consumption expenditures (PCE) price index rose 0.2% for the month, up 2.5% from a year ago, matching expectations.
Source: CNBC
Excluding food and energy, core PCE also climbed 0.2%, with a 2.6% annual increase, slightly below the 2.7% estimate. Personal income rose 0.3%, beating the 0.2% forecast, while consumer spending increased by 0.5%, as expected.
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📊 Amazon Is A Bank
Source: GS Investing
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