Increased tariffs on China is likely to negatively impact U.S. growth
Escalating tensions between two of the largest economies of the world, U.S. and China, reached another level at the beginning of this month after President Trump announced an increase in tariffs on $200 billion of Chinese goods from 10% to 25%. Further, he also threatened to apply 25% tariffs on the remaining imports from China worth around $300 billion.
However, according to chief U.S. economist at Nomura - Lewis Alexander, levying 25% tariff on all Chinese goods entering American borders is likely to hurt U.S. economic growth especially when the economy is already showing signs of a slowdown in the recent months.
He emphasized that the import tariffs are majorly paid by the American importers and the American consumers rather the Chinese, therefore it can result into core inflation in America growing by 0.5% point over the next 12 months.
He further added that owing to this tariff hike the likely impact on U.S. economic growth is how trade developments affect business confidence and investments in the coming months.
The trade war, according to the research published by the New York Federal Reserve Bank, is likely to cost a typical American household $831 per year.
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Notable companies
The most notable companies in this group are Amazon.com (NASDAQ:AMZN), PDD Holdings (NASDAQ:PDD), Alibaba Group Holding Limited (NYSE:BABA), JD.com (NASDAQ:JD), eBay (NASDAQ:EBAY), Chewy (NYSE:CHWY), Vipshop Holdings Limited (NYSE:VIPS), Wayfair (NYSE:W), Just Eat Takeaway.com N.V. (OTC:JTKWY), Revolve Group (NYSE:RVLV).
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 33.65B. The market cap for tickers in the group ranges from 622 to 1.87T. AMZN holds the highest valuation in this group at 1.87T. 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 -2%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was 8%. RERE experienced the highest price growth at 6%, while LGCB experienced the biggest fall at -47%.
Volume
The average weekly volume growth across all stocks in the Internet Retail Industry was -15%. For the same stocks of the Industry, the average monthly volume growth was -31% and the average quarterly volume growth was -17%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 62
P/E Growth Rating: 67
Price Growth Rating: 59
SMR Rating: 80
Profit Risk Rating: 90
Seasonality Score: 11 (-100 ... +100)