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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

According to Elon Musk, the time for Tesla Inc (NASDAQ: TSLA) to focus on profits has arrived. In a recently written email that was obtained by the EV news website, Electrek, Musk warned the company’s employees that if Tesla’s bottom-line doesn’t reflect significant growth — meeting the market’s expectations — investors will likely pump the brakes and send the stock plummeting.

In the email, Musk states:

When looking at our actual profitability, it is very low at around 1% for the past year. Investors are giving us a lot of credit for future profits, but if, at any point, they conclude that’s not going to happen, our stock will immediately get crushed like a soufflé under a sledgehammer!

In addition, Musk pointed to the necessity of finding new ways to save money in manufacturing. Also from the email, Musk says, “[I]n order to make our cars affordable, we have to get smarter about how we spend money…A great idea would be one that saves $5, but the vast majority are 50 cents here or 20 cents there.”

While the company has never reported positive net income on an annual basis, shares have skyrocketed approximately 1,160% over the past five years as investors drove up the stock on the belief that profits would come at some point down the road. Although Tesla reported its fifth consecutive quarter of profitability in Q3 2020, Musk appears to sense that shareholders are yearning for more.

Profits, undoubtedly, are important, but investors should also appreciate the company’s growing cash flow. For the first time in the past decade, Tesla generated free cash flow on an annual basis, about 3.9% of revenue for fiscal 2019, according to Morningstar. On a trailing-twelve-month basis, this metric has accelerated to 6.5%.

Considering Musk’s ample incentive package revealed in the spring, there should be little surprised that he’s so concerned with Tesla’s stock price.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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• Tesla stock could surge 104% to $1,000, according to this analyst
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Despite surging COVID-19 cases in Europe and the US, rising trade tensions with China and a strong Australian dollar, ASX iron ore mining shares are still on the rise. The Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG) and BHP Group Ltd (ASX: BHP) share prices have all managed to stay near record-all time highs. 

Iron ore prices at record highs 

Iron ore prices have held onto 8-year highs, above the US$120 per tonne level. This has been driven by China’s significant infrastructure spending, from renewable energy projects to railways and airports. The significant spending in infrastructure is holding up commodity prices across the board. The Baltic Dry Index, a benchmark for the cost of shipping commodities including iron ore and coal, is at its highest level since September 2019. 

Vale to avoid weakening iron ore markets

Brazil exported a total of 31.2 million tonnes of iron ore in October, down 8.6 percent on the year. Brazilian mining giant, Vale weighed on global supply in the first half of this year following wet weather conditions and COVID-19 related lockdowns. 

More recently, Vale said that it would place caution with ramping up production to avoid driving down the iron ore market. The miner is prepared to increase its production capacity using safer and less polluting methods to 450 million tonnes in the next years. This is almost 50% more than its forecast production for 2020. However, it may ease production if the expected surge in infrastructure and manufacturing in Asia fails to materialise. 

Higher commodity prices means higher dividends 

Higher commodity prices throughout 2020 has allowed ASX iron ore miners to pay market leading dividends. 

In BHP’s full year results, the board announced a final dividend of 55 US cents per share, which includes an additional amount of 17 US cents per share, above its 50% payout policy. This brings its total announced dividends to US$1.20 per share. At today’s prices, this would represent a dividend yield of 4.80%. Similarly, the strong operating performance at a time of high prices has allowed Rio Tinto to pay a dividend yield of 5.90%. 

Fortescue, as a pure iron ore play, has benefited the most from higher iron ore prices. Its net profit after tax in FY20 increased 49% on FY19 to US$4.7 billion. And its shareholders were pleasantly rewarded with an eye watering dividend  yield of 10.30%. 

More reading

• Fund managers are snapping up these ASX stocks at a record pace
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• 3 ASX dividend shares with 5%+ yields to buy today
• Envirosuite (ASX:EVS) share price soars 12% after AGM

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is dropping lower. The benchmark index is currently down 0.3% to 6,570.8 points.

Four shares that have not let that hold them back are listed below. Here’s why they are charging higher:

Laybuy Holdings Ltd (ASX: LBY)

The Laybuy share price is up 1.5% to $1.42. Investors have been buying the buy now pay later provider’s shares after the release of its November update. According to the release, Laybuy achieved gross merchandise value (GMV) of NZ$71 million in November. This represents an increase of 56% on October’s GMV. It is also well ahead of management’s guidance for November GMV of NZ$61 million.

Mesoblast limited (ASX: MSB)

The Mesoblast share price has jumped 6% higher to $4.38. The catalyst for this was the release of an announcement relating to its remestemcel-L product. Mesoblast revealed that the United States Food and Drug Administration (FDA) has granted Fast Track designation for remestemcel-L in the treatment of acute respiratory distress syndrome (ARDS) due to COVID-19 infection. The Mesoblast share price was up as much as 19% in early trade.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is up a further 9.5% to $5.26. Investors have been buying the copper producer’s shares this week following its strategy update. One broker that was pleased with what it heard at the update was Morgan Stanley. This morning its analysts retained their overweight rating and $6.60 price target on its shares. It was particularly pleased with its T3 progress.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price has zoomed over 7% higher to $3.99. This follows the release of two positive announcements this morning. The biopharmaceutical company revealed that the US FDA has approved the institutional use of its Ga-PSMA-11 product at the University of California, Los Angeles and the University of California, San Francisco under an academic New Drug Application submission. It also advised that the TGA has given it approval to commence its first-in-human Phase I study of its next generation prostate cancer therapy product, TLX592, in patients with advanced prostate cancer.

More reading

• ASX 200 down 0.2%: Zip’s November update, Mesoblast jumps, Westpac’s asset sale
• Mesoblast (ASX:MSB) share price jumps 19% on FDA update
• Why the Telix (ASX:TLX) share price is up 9% to a new record high today
• Laybuy (ASX:LBY) share price on watch after delivering strong growth in November
• Flight Centre and Mesoblast were among the most traded shares on the ASX last week

Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Once the exclusive domain of professionals, real-time ASX share price data is starting to become available to the average punter.

Popular online broker CMC Markets last week brought its price of ASX live data to $0. It was previously on 20 minutes delay if the user didn’t pay extra.

A mobile trading app, Marketech Focus, also announced this week that real-time data would be shown to its customers as default.

CMC Markets Asia-Pacific and Canada head Matt Lewis told The Motley Fool that the company is bearing the cost of providing this service.

“This feature enables customers to keep on top of price actions in the market,” he said.

“This is a cost CMC Markets will take on from our bottom line to benefit our customers in lowering their overall trading costs.”

Why give away real-time data?

The number of new retail investors performing ‘day trading’ has boomed this year amid the COVID-19 pandemic.

Lewis said that CMC’s customers had demanded live data. 

“We want to continue to build on our value offering to help drive success for our self-directed trading community,” he said.

“The decision to offer free live data is driven by customer feedback. We received this feedback and we listened.”

Marketech Focus managing director Travis Clark claimed his app is a trailblazer in the smartphone share trading space.

“Our feature-set, especially streaming real-time pricing, lifts Marketech to a new level of functionality and sophistication not available to most retail traders at this price point and rarely provided by our competitors,” he said.

“It clearly lifts us above opportunistic new share trading apps that typically only offer fairly basic services.”

The upstart budget platform Superhero, which has been dubbed Australia’s version of Robinhood, shows delayed ASX data on its Basic plan. Only an upgrade to the Live plan for $9 per month shows up real-time information.

Real-time share market data could be good for you

An investor behavioural academic told The Motley Fool earlier this year how delayed data encourages dangerous risk-taking.

“Some trading apps offer a low-cost option, which means for a basic account holder, you can only view market data with a delay and you can only place market orders,” said RMIT senior lecturer Angel Zhong.

“The limited data provided to retail investors exacerbate their impulsive buying and selling, as they can’t see a complete picture of the underlying stock.”

However, ultra-low brokerage costs also stoke social trading, which can lead to irrational buying and selling decisions.

“Social trading refers to exchange of stock trading ideas in groups and discussions on social media websites such as Facebook, Twitter and Reddit,” Zhong said. 

“With easy and low-cost trading platforms, retail investors may act on misleading information from social trading and suffer losses in a highly volatile market.”

More reading

• ASX shares looking awesome for next year: economist
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook and Twitter. The Motley Fool Australia has recommended Facebook. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Regional Express Holdings Ltd (ASX: REX) share price is soaring today on news the airline will start its Sydney-Melbourne route in March 2021, with promotional fares going on sale starting today. 

At the time of writing, the Rex share price has risen 3.25% to $1.595.

Rex opens up Golden Triangle route

Rex announced yesterday that its first 3 Boeing 737-800s would take off between Sydney and Melbourne on 1 March 2021.

To celebrate the launch of that route, the company is offering 100,000 promotional fares, available today. The special fare price for the Sydney-Melbourne service will start at $79 from 2 December 2020, for travel within 12 months.

The regional airline is also expanding its service to include Brisbane, taking on the major airlines head-to-head on the so-called ‘golden triangle’ of Sydney-Melbourne-Brisbane. The routes are collectively known as ‘the golden triangle’ as they are the busiest domestic routes in Australia. 

Rex plans to deploy its other two Boeing 737-800 jets to expand that service to Brisbane by Easter.

The airline says it will offer all the usual perks of a full service carrier including 8 business class seats. All fares include checked baggage allowance, food, pre-assigned seating and online check-in.

Lounge access and on-board Wi-Fi will be free for business class, whilst economy passengers can access these options for a small fee.

Competition heats up for low-cost carriers

The new routes will pit Rex’s business head-to-head with other low-cost airlines operating the domestic route.

Rex’s prices are cheaper than a Virgin Airlines (which is currently delisted from the ASX) flight at a similar time slot. The prices are more in line with Qantas Airways Limited (ASX: QAN)’s budget offshoot Jetstar, which  announced ‘the biggest airfare sale of the year’ two weeks ago. Jetstar’s popular ‘Return for Free’ sale went live on 17 November, with 400,000 return trips across 51 domestic routes up for grabs.

Rex’s new routes will also compete with the post-administration Virgin 2.0, which plans to target ‘value-conscious’ customers after a strategic review of its business-class offering, inflight Wi-Fi and entertainment.

About the Rex share price in 2020

The Rex share price has gained 35% this year. In March, the share price dropped more than 60% after the COVID-19 lockdown closed most of Australia’s state borders. The share price has since recovered to today’s level.

Rex was severely affected by the lockdowns and received $62 million in government aid. It also signed a deal with the private Asian investment company PAG for $150 million to fund its expansion, which could see PAG eventually own half of Rex.

Rex currently commands a market cap of $170 million.

More reading

• Flight Centre and Mesoblast were among the most traded shares on the ASX last week
• Which ASX travel shares performed the best in November? 
• Qantas (ASX:QAN) axes 2,000 jobs
• Top brokers name 3 ASX shares to buy next week
• Is the Qantas (ASX:QAN) share price heading to $7.00?

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is dropping lower. The benchmark index is currently down 0.2% to 6,576.6 points.

Here’s what has been happening on the market today:

Zip delivers record November.

The Zip Co Ltd (ASX: Z1P) share price is trading lower despite revealing a record performance during November. The buy now pay later provider delivered record transaction value of $577.1 million for the month. This is up 44% on October and more than 100% year on year. Based on this, Zip’s transaction value is now annualising at almost $7 billion. Management advised that this was driven by a 157% increase in monthly transaction numbers and a 104% year on year increase in customer numbers to 5.3 million.

Mesoblast rockets.

The Mesoblast limited (ASX: MSB) share price jumped as much as 19% higher this morning after the release of an announcement relating to its remestemcel-L product. That announcement revealed that the United States Food and Drug Administration (FDA) has granted Fast Track designation for remestemcel-L in the treatment of acute respiratory distress syndrome (ARDS) due to COVID-19 infection.

Westpac general insurance sale.

The Westpac Banking Corp (ASX: WBC) share price is edging lower today despite announcing the sale of its Westpac General Insurance and Westpac General Insurance Services businesses to Allianz for $725 million. The two parties have also entered into an exclusive 20-year agreement for the distribution of general insurance products to Westpac’s customers. Management notes that the sale will add around 12 bps to Westpac’s common equity Tier 1 capital ratio.

Best and worst ASX 200 performers.

The best performer on the ASX 200 at lunch is the Sandfire Resources Ltd (ASX: SFR) share price with an 8.5% gain. This morning Morgan Stanley retained its overweight rating and $6.60 price target on its shares. It was pleased with its T3 progress. The worst performer has been the Worley Ltd (ASX: WOR) share price with a 3% decline on no news.

More reading

• Westpac (ASX:WBC) share price edges higher on $725 million general insurance sale
• Zip (ASX:Z1P) share price higher after record November performance
• Meet the most unpopular ASX large cap stock according to analysts
• Mesoblast (ASX:MSB) share price jumps 19% on FDA update
• Banks rejoice: House prices to return to 2019 levels

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Westpac Banking Corp (ASX: WBC) share price is trading higher on Wednesday following the release of a positive announcement.

In morning trade, the banking giant’s shares are up 0.5% to $20.30.

What did Westpac announce?

This morning Westpac announced that it will sell its Westpac General Insurance and Westpac General Insurance Services businesses to Allianz for $725 million.

The two parties have also entered into an exclusive 20-year agreement for the distribution of general insurance products to Westpac’s customers.

According to the release, the sale price represents a multiple of 1.3x FY 2020 gross written premium and is estimated to result in a small post-tax gain on sale in FY 2021.

Management advised that the sale of its General Insurance business adds around 12 bps to Westpac’s common equity Tier 1 capital ratio.

In addition to this, the transaction includes contingent payments subject to integration milestones and business performance over the next five years. There are also ongoing payments in accordance with the distribution agreement.

Management notes that this new distribution arrangement expands its existing partnership with Allianz, which has seen Westpac distribute a range of Allianz’s products to customers including Auto, Travel, Boat, and Business insurance since 2015.

Westpac’s Chief Executive Officer, Peter King, believes the agreement was a significant milestone in the quest to build a simpler, stronger bank.

He commented: “This transaction is another step in simplifying our business while continuing to help customers with their general insurance needs.”

“General Insurance products are important for many Australians and we are pleased to be entering a long-term partnership with a global insurance expert to continue to help customers protect the things they value,” Mr King said.

Westpac will retain responsibility for certain pre-completion matters and provide protection to Allianz via a combination of provisions, warranties, and indemnities.

The bank is expecting the transaction to complete in the second half of 2021. Though, it remains subject to various regulatory approvals.

More reading

• Banks rejoice: House prices to return to 2019 levels
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises on Tuesday
• Westpac (ASX:WBC) share price gaining ground despite slap by regulator
• CBA (ASX:CBA) and the ASX banks just had an amazing month

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It has been a rollercoaster ride for the Treasury Wine Estates Ltd (ASX: TWE) share price after Chinese authorities slapped a brutal tariff on Australian wine exports. With the Treasury Wine share price being down almost 50% year to date, here’s what the big brokers think following the major news this week. 

Provisional measure implemented on Australian wine imports into China 

The provisional measure states that, commencing 28 November 2020, a deposit at a rate of 169.3% will be applied to the imported value of Treasury’s wine in containers of two-litres or less. The provisional measure can remain in place until 28 August 2021 at the latest. The final determination of the anti-dumping investigation will determine if the measure will be maintained, adjusted or removed. 

Treasury Wine response 

In FY20, China represented approximately 30% of Treasury Wine’s earnings. The company has been forced to come up with measures to mitigate the effects of the tariffs including redirecting products to other markets, accelerating marketing in other jurisdictions to drive demand and reducing global overhead costs. 

Big broker updates on Treasury Wine share price

Brokers are divided between the fallout of Chinese sales and the opportunity for Treasury Wine to pivot its business into the rest of Asia, Europe and the United States. 

Citigroup Inc (NYSE: C) lowered its Treasury Wine share price target from $10.40 to $8.20 with a sell rating. The broker warns that China’s aggressive stance towards Australian wine imports will have a negative and long-lasting impact on the company and sector. While the broker noted there could be upside from North America operations, it regards the investment case as too risky. 

Credit Suisse Group (NYSE: CS) upgraded the company from neutral to outperform and raised its price target from $8.50 to $11.00. In stark contrast to Citi, it believes that given the recent Treasury Wine share price falls, the worst is now behind the company and the tariffs are temporary. 

Macquarie Group Ltd (ASX: MQG) retains a neutral rating and a $10.60 price target. There was no change in the broker’s rating or target after reviewing the news of China’s move. Whilst Macquarie believes there is an opportunity for Treasury to pivot to the rest of Asia, and US operations remain sound, the broker is concerned about downside risks to margins and sales. 

Morgan Stanley (NYSE: MS) lowered its Treasury Wine share price target from $11.00 to $10.00. It lowered the price target but retains an overweight rating for now, albeit extremely cautious, because of the company’s balance sheet strength and pivot options. 

More reading

• Leading brokers name 3 ASX shares to sell today
• Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November
• ASX 200 drops on Monday
• Leading brokers name 3 ASX shares to buy today
• Why Kathmandu, Resolute, Select Harvests, & Treasury Wine Estates are dropping lower

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Downer EDI Ltd (ASX: DOW) share price is lifting today on news the company has inked a deal to sell its Laundries business. At the time of writing, the Downer share price is up 0.76% at $5.32.

Downer is an integrated services company that operates primarily in Australia and New Zealand. The multi-functional company has three divisions: infrastructure, mining and rail. These industries move into market sectors such as minerals and metals, oil and gas, power, transport, telecommunications, water and property.

What’s driving the Downer share price higher today?

The Downer share price is moving higher today after entering an agreement with private equity firm, Adamantem Capital.

Downer said it was selling a 70% stake in its Laundries business for approximately $155 million. It advised that Adamantem would proceed with the purchase on a cash and debt free basis.

Once the transaction is completed, Downer will recognise its remaining 30% interest as an equity accounted investment. The company took ownership of the Laundries business in 2017 when it acquired an 88% holding in Spotless Group Holdings for $1.3 billion.

Downer previously attempted to offload the business to South Pacific Laundry just last month, and Alsco in October. However, competition regulator, the Australian Competition and Consumer Commission (ACCC), expressed concerns over both of the deals, leading to two failed takeovers.

The sale is subject to certain conditions being met, along with the ACCC and various customer approvals. It is expected that the deal will be finalised by the end of March 2021.

Management commentary

Downer chief executive Grant Fenn welcomed the sale, saying:

The sale of 70% of Laundries achieves the objective of removing one of the most capital-intensive businesses from the Downer balance sheet. Laundries continues to perform well as it recovers from the COVID-19 lockdowns in New Zealand and Victoria, and by retaining a 30% interest we will participate in this ongoing recovery.

Adamantem managing director Chris Adams added:

We intend to invest to grow the business for the benefit of the 1,900 loyal employees and numerous longstanding customers. We look forward to partnering closely with Downer and the management team and to take advantage of the exciting opportunities that lie ahead.

About the Downer share price

After falling more than 30% since the beginning of the year, the Downer share price has been regaining ground. From the start of November, the Downer share price is up 18% and the highest it has been since March. Although the company is still a long way off its 52-week high of $8.94 high reached in January.

More reading

• ASX stock winners from the $23 billion Victorian state budget
• Revealed: Shares that’ll shoot up with a COVID-19 recovery
• Why the Downer (ASX:DOW) share price is outperforming today
• Why the Downer EDI (ASX:DOW) share price has dropped today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Online sales for Cyber Monday landed in record territory in 2020, up more than 15% year over year, according to data gathered by Adobe Inc (NASDAQ: ADBE) Analytics. Sales climbed to a record-setting $10.8 billion, marking the biggest online shopping day ever in the U.S.  

Adobe’s data tracks e-commerce transactions from 80 of the top 100 online retailers in the U.S. to arrive at its conclusions.

Buy online, pick up in store also took on increased importance this year as consumers sought to avoid crowds amid the pandemic. Curbside pickup on Cyber Monday jumped 30% versus last year.

“Throughout the remainder of the holiday season, we expect to see record sales continue and curbside pickup to gain even more momentum as shoppers avoid crowds and potential shipping delays,” said Taylor Schreiner, a director at Adobe Digital Insights.

Not all the news was good. Digital sales fell short of Adobe’s initial forecast of $12.7 billion. The prediction had been revised lower in recent days, as it became clear that holiday shopping began much earlier in 2020 than in previous years. As a result, Adobe trimmed its digital sales forecast for this year’s holiday season to $184 billion, up roughly 30% compared with last year. That’s down from its original forecast of $189 billion.

Many online retailers began offering holiday bargains starting as early as October in response to the Amazon.com Inc‘s (NASDAQ: AMZN) belated Prime Day sale and the pandemic. These factors likely helped downplay the overall importance of Black Friday and Cyber Monday in the holiday shopping season.

Adobe’s data echoes the results released by some of the predominant players in the e-commerce arena. Amazon said that sales by independent businesses on its platform soared 60% year over year to a record $4.8 billion. For the same period, Shopify Inc (NYSE: SHOP) said merchants generated sales of $5.1 billion, up 76% during the holiday weekend. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 2 reasons Amazon will keep taking ad sales from Google
• Shopify reports record-setting Black Friday sales
• Forget eBay, Shopify is a better e-commerce stock
• How the biggest companies are the worst investments
• 10 most searched shares in Australia

Danny Vena owns shares of Adobe Systems, Amazon, and Shopify. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Adobe Systems, Amazon, and Shopify and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Adobe Systems and Amazon. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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