Amazon (AMZN) reached the milestone $2 trillion market capitalization after the media reported that it might open its stores to Chinese firms. The rumors sent China's e-commerce firms lower. Amazon’s re-entry would hurt PDD (PDD), Alibaba (BABA), and JD.com (JD) the most.
Amazon has many ways to increase its profit margins. It may raise subscription fees for Amazon Prime. It may also adjust shipping and handling rates, depending on consumer demand at its e-commerce site.
In the electric vehicle sector, Tesla (TSLA) continued its rally after Volkswagon (VWAGY) and Rivian (RIVN) announced a joint venture worth $5 billion. The market’s bullishness for Tesla suggests that investors are skeptical that its competitors may mount a serious challenge. Both General Motors (GM) and Ford Motor (F) backed down from their ambitious EV targets.
General Motors is the better automotive stock compared to Ford. The former forecasts the production of 200,000 to 250,000 EVs this year. This is below the 300,000 prior forecast. GM is reallocating its cash to reward investors instead. It is buying back $10 billion in shares. It also hiked its dividend by 33% to $0.12 a share.
Ford stock is stuck in a trading range at around $12.50. Investors are accumulating the stock, citing valuations. However, the company lacks growth. Any economic slowdown would hurt Ford more than GM as a result.
