Temu and Shein's soaring popularity has Wall Street eyeing China's influence on tech earnings
Publishing timestamp: 2024-07-29 12:00:01
Summary
Earnings reports from Amazon, Meta, and eBay could raise questions about the impact of discount retailers Temu and Shein in the U.S. market. These China-linked companies have seen significant growth by offering inexpensive goods and aggressive marketing. The rise of discount shopping apps and the de minimis exception for packages from China valued under $800 have fueled their growth. Tech earnings season has started with some companies missing estimates, and investors are watching for the impact of Temu and Shein on e-commerce marketplaces. Amazon is expected to show revenue growth, but faces competition from these discount retailers. Officials are considering closing the trade loophole that benefits Temu and Shein. Meta has concerns about Temu's ad spend, while eBay and Etsy are taking steps to differentiate themselves. Amazon is aware of the competition and plans to launch a discount store with unbranded items priced below $20.
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