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Aug 06, 2018
A Rosy Outlook for FinTech and Blockchain

A Rosy Outlook for FinTech and Blockchain

KPMG, one of the world’s biggest tax advisory and auditing firms, released their twice-yearly “The Pulse of Fintech” report on July 31. It offered a rosy outlook for the space, revealing a significant uptick in venture capital, private equity, and mergers and acquisitions deals through Q1 and Q2 2018 on a level that already exceeds 2017’s overall totals.

Two massive deals accounted for the healthy growth: Alibaba’s fintech affiliate Ant Financial raised $14 billion during Q2, while Vantiv acquired WorldPay for $12.9 billion in Q1. While transactions that massive were relative outliers during the first two quarters, fintech market activity is rising worldwide – traditional power-players in the US, UK, China, and India continued to enjoy healthy growth, while relative newcomers France, Switzerland, South Korea, and Japan saw their own significant deals.

Angel and seed financing dollars have steadily declined across industries in recent times, but fintech has thus far proved largely immune. The report recognizes the sector’s core attributes – “well-defined market opportunities in its major segments, long-developing innovation cycles, and significant growth opportunities amid the best-developed segments” – as reasons for the continued uptick, though it did note that the sector is not immune from volatility.

 

 

Blockchain continues to attract attention from investors around the world, with most activity in 2018 being focused on “more experienced companies and consortia looking to obtain additional rounds of funding” instead of startups. Supply chain management was highlighted as a burgeoning area of interest for blockchain-focused companies, with the US being “particularly active on the blockchain front, with total investment in the first half of the year already exceeding the total seen in 2017.”

Interest “was not limited to one jurisdiction” – the report listed “good-sized” funding rounds of $100+ million to R3 and Circle Internet Finance in the US and $77 million to France’s Ledger as notable deals. KPMG found that ICOs “continued to garner interest globally, despite countries like China banning the practice,” but did not offer predictions as to the future global regulatory climate.

Fintech and blockchain funding are on pace to pass their 2015 peak, with $57.9 billion spent through Q2, and global tech leaders like Google, Amazon, and Microsoft are hiring experts to drive their respective expansions into the space.

 

 

Investors are taking note of the bright outlook for fintech and blockchain going into Q3 and Q4 2018 – Ian Pollari, KPMG’s Global Co-Leader of Fintech, pointed to geographic diversification, as well as interest in new fintech sectors, as harbingers for future growth. “The fintech market globally continues to broaden and diversify,” said Pollari, specifically mentioning Brazil, Japan, and South Korea. “We are also seeing a mix of fintech sectors drawing increasing interest, including data, AI, regtech and insurtech – and combinations thereof that provide more value to customers. This diversification across countries and products will likely keep the fintech market strong for the foreseeable future.”
 

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Related Ticker: BABA

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Financial analyst and market blogger with expertise in equity research, fundamental analysis, and macroeconomic trends. I regularly publish coverage on individual stocks, ETFs, and sector developments — combining rigorous financial analysis with clear, engaging writing for a broad investment audience.


BABA in downward trend: 10-day moving average moved below 50-day moving average on September 04, 2026

The 10-day moving average for BABA crossed bearishly below the 50-day moving average on September 04, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 17 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on August 21, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BABA as a result. In 59 of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.

The Moving Average Convergence Divergence Histogram (MACD) for BABA turned negative on August 21, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 29 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 63%.

BABA moved below its 50-day moving average on August 31, 2026 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where BABA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.

The Aroon Indicator for BABA entered a downward trend on September 14, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where BABA's RSI Oscillator exited the oversold zone, 27 of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 13 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

Following a +1.15% 3-day Advance, the price is estimated to grow further. Considering data from situations where BABA advanced for three days, in 180 of 251 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.

BABA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is 19 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Valuation Rating of 54 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.736) is normal, around the industry mean (34.700). P/E Ratio (24.689) is within average values for comparable stocks, (39.840). BABA's Projected Growth (PEG Ratio) (0.507) is slightly lower than the industry average of (1.016). Dividend Yield (0.010) settles around the average of (0.085) among similar stocks. P/S Ratio (1.690) is also within normal values, averaging (1.352).

The Tickeron Price Growth Rating for this company is 75 (best 1 - 100 worst), indicating slightly worse than average price growth. BABA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is 78 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BABA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.

Notable companies

The most notable companies in this group are Amazon.com (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), PDD Holdings (NASDAQ:PDD), eBay (NASDAQ:EBAY), JD.com (NASDAQ:JD), Wayfair (NYSE:W), Chewy (NYSE:CHWY), Vipshop Holdings Limited (NYSE:VIPS), Revolve Group (NYSE:RVLV), Jumia Technologies AG (NYSE:JMIA).

Industry description

The internet retail industry includes companies that sell products and services through the Internet. With more and more consumers using online retailers, the companies have seen a big increase in the use of their services. Some of the companies in the group are focused on selling business-to-business products and services. Others sell business-to-consumer products and services. Internet retailers offer a wide variety of products like books, apparel, and electronics. Some companies even specialize in only one or two categories. One potentially critical factor for players to thrive in this space is the quality and speed of product delivery. This requires an investment in efficient distribution networks. Things like logistics are important factors in the success in the extremely competitive industry. For a company to stay relevant in the industry it must have effective pricing strategies and upgraded websites. The websites must be easy to navigate and engaging for customers. In addition to the revenues generated from straight sales, internet retailers can generate revenue from subscription fees and advertising. Amazon.com, Inc., Alibaba Group, and JD.com are some of the global leaders.

Market Cap

The average market capitalization across the Internet Retail Industry is 88.61B. The market cap for tickers in the group ranges from 622 to 2.73T. AMZN holds the highest valuation in this group at 2.73T. The lowest valued company is RBZHF at 622.

High and low price notable news

The average weekly price growth across all stocks in the Internet Retail Industry was -3%. For the same Industry, the average monthly price growth was -10%, and the average quarterly price growth was -11%. WBUY experienced the highest price growth at 10%, while UZX experienced the biggest fall at -19%.

Volume

The average weekly volume growth across all stocks in the Internet Retail Industry was 85%. For the same stocks of the Industry, the average monthly volume growth was 82% and the average quarterly volume growth was -47%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 54
P/E Growth Rating: 71
Price Growth Rating: 66
SMR Rating: 76
Profit Risk Rating: 93
Seasonality Score: -8 (-100 ... +100)
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an online and mobile commerce company

Industry InternetRetail

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Internet Retail
Address
1 Matheson Street, Causeway Bay
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+852 22155100
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