Market Power Drives Harder Bargains. Can SMEs Compete Globally?


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Is there a widening difference between the profitability of small businesses and large?  Some say there is and blame globalization. Milton Ezrati, contributor for Forbes thinks otherwise:  “The winner-take-all character of global trade seems to get the blame for just about anything unfair or inequitable these days. But it would be a mistake to reach for this easy answer.”  He goes on to say …

Rather than drag out the perennial whipping boy of globalization, a better explanation might well lie with questions of market power. All may have access to the same suppliers, but larger firms, such as Walmart and Amazon, can drive harder bargains on price and delivery terms than smaller or mid-sized firms.

Is America losing its small businesses?  Read more.

Bed Bath & Beyond Once Again Drives Entrepreneur Index™ Higher

The retailer reports earnings after market close.

3 min read

Opinions expressed by Entrepreneur contributors are their own.

Retailer Bed Bath & Beyond (BBBY) will report financial results after the market closes today and they will almost certainly be bad. Analysts expect a ten percent decline in sales and a 25 percent drop in earnings for the quarter.

The stock, however, continues to rise, jumping 5.09 percent today — the biggest gain on the Entrepreneur Index™. In fact, BBBY has had the biggest gain on the index three times in the last week and is up a staggering 71.5 percent so far this year. Investors are clearly betting on improvement. Since a trio of activist investors targeted the company for action two weeks ago, the shares are up 39.9 percent.

The rest of the market was generally positive across all sectors with a late pop from positive U.S.-China trade news pushing the indexes to modest gains. The S&P 500 and Nasdaq Composite indexes were up 0.35 percent and 0.69 percent respectively while the Dow was up just 0.03 percent.

With BBBY leading the way, the Entrepreneur Index™ was up 0.83 percent. Only eight of sixty stocks on the index declined today.

Three of the four FAANG technology stocks on the index were up. Netflix, down 0.22 percent, was the only one to decline. Salesforce.com (2.08 percent) and NVIDIA Corp. (1.5 percent) had the biggest gains in the sector. Twitter, down 1.11 percent, had the biggest loss.

Drug-makers Regeneron Pharmaceuticals, up 3.16 percent, and Alexion Pharmaceuticals, up 2.65 percent, had good gains after two-day declines. Alexion set a 52-week high in the process. Clothing-maker Under Armour Inc. also bounced back 3.09 percent from a nearly five percent decline yesterday.

Other good gains on the index were posted by Franklin Resources (2.1 percent), Estee Lauder Companies (1.63 percent), Hess Corp. (1.31 percent) and Ford Motor Co. (1.3 percent). The REIT sector was also generally strong. SL Green Realty Corp., up 1.97 percent, and Kimco Realty Corp., up 1.65 percent, had the biggest gains in the sector.

While only ten stocks on the Entrepreneur Index™ had gains yesterday, only eight had losses today. Twitter had the biggest decline, falling 1.11 percent, followed by food-maker J.M. Smucker Company, down 0.34 percent.

Earnings season kicks into a higher gear next week with major banks reporting results.

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.

The New Tesla Model Y Gets Chilly Reception and Drives Company Shares Down

This is despite Elon Musk’s prediction that it will outsell all the company’s other models combined.

3 min read

Opinions expressed by Entrepreneur contributors are their own.

New vehicle introductions are usually a slam-dunk for Tesla and CEO Elon Musk. Not the Tesla Model Y, the company’s second electric SUV that was unveiled this morning.

Mr. Musk was his ebullient self, predicting that the model would outsell the company’s models X, S and 3 combined. The “cross-over” utility vehicle gives Tesla a second product in the hottest segment of the automotive market. One analyst, however, called the vehicle underwhelming, and others were worried about Tesla’s ability to finance production of the new model and to deliver it on time.

The company plans to bring the first and most expensive ($60,000) version of the Y model to market by the fall of next year. Tesla shares fell 4.99 percent — the biggest decline on the Entrepreneur Index™ today.

Investors were more optimistic about other stocks, in part because of further encouraging signs on the U.S.-China trade negotiations. The major indexes all had nice gains today closing out one of the better weeks in the market this year. The Dow and S&P 500 indexes were up 0.54 percent and 0.5 percent respectively while the Nasdaq Composite index gained 0.76 percent. The Entrepreneur Index™ was up 0.08 percent.

The technology sector was generally positive today. Cognizant Technology and Amazon.com were up 1.69 percent and 1.55 percent respectively. NVIDIA Corp., up 2.57 percent, posted the biggest gain on the Entrepreneur Index™ today. Both Facebook and Adobe Systems Inc., however, had sharp declines. Adobe was down 3.96 percent after the company reported first quarter earnings and revenues above estimates but issued guidance for the second quarter that was below expectations. The stock is up 13.6 percent this year.

Facebook, meanwhile, was down 2.46 percent after falling nearly two percent yesterday. Several factors are hurting the stock. The global outages on the company’s Facebook, Instagram and WhatsApp platforms continued to pose problems yesterday. The company also announced today that two senior executives, Chris Cox, chief product officer, and Chris Daniels, head of the business development team would be leaving the company. Facebook, YouTube and Twitter were also scrambling to take down videos of the mosque shooting in New Zealand from their networks.

Related: Elon Musk Unveils Tesla’s Model Y Compact SUV

L Brands bounced back from a more than three percent decline yesterday, rising 1.33 percent today. Other retailers, however, continued to fall. Bed Bath & Beyond, down almost three percent yesterday, fell another 4.61 percent today–the second biggest decline on the Entrepreneur Index™. Gap Inc. was also down 0.9 percent after an almost two percent drop yesterday.

The REIT sector was also weak with eight of nine REITs on the Entrepreneur Index™ in the red. Simon Property Group (-2.06 percent) and Boston Properties (-1.87 percent), had the biggest declines.

Other prominent gains on the index today included asset manager Franklin Resources (2.52 percent), Estee Lauder Companies (1.72 percent), and Regeneron Pharmaceuticals (1.71 percent).

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.