Office Depot Inc (NASDAQ: ODP) is rocketing in the market this morning, and for good reason. The company announced a partnership with Alibaba that’s exciting investors who are pushing the stock for the top. Today, we’ll talk about:
- The partnership that’s sending ODP stock for the top;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
BABA Partnership Sends ODP For The Top!
As mentioned above, Office Depot is having a great day in the market today after the company announced a new partnership with Alibaba. The announcement came by way of press release early this morning.
In the release, ODP pointed to the fact that Alibaba owns one of the world’s largest B2B trading platforms. The new partnership is comes iwth the goal of empowering United States small and medium-sized businessess to grow by tapping into the global B2B e-commerce marketplace.
In the release, the company said that the collaboration specifically focuses on several key areas that are expected to provide United States entrepreneurs and business owners access to a single online destination that will host one of the world’s largest catalogues of goods and services across all categories.
The new online destination will be co-branded as “Office Depot on Alibaba.com.” and will provide access to Alibaba’s supplier network, strong product selection and exclusive online and in-store offers for some of Office Depot’s products and services.
In a statement, Gerry Smith, CEO at ODP, had the following to offer:
As a trusted partner to millions of businesses, our customers tell us they want more choice in the market and need an expanded set of products and services to help their businesses grow. We believe our collaboration with Alibaba.com is exactly what they are asking for. Leveraging Office Depot’s trusted brand, local presence, and national supply chain distribution network with Alibaba’s global supplier network and well-known capabilities in serving SMBs, U.S. businesses can now access a wide array of products and services through Office Depot and Alibaba.com’s collaboration, which will empower them to compete and thrive. Through this initial phase of work together with Alibaba.com, we intend to grow our collaboration in ways that will drive even greater value and choice for our current and future customers.
The above statement was followed up by John CAplan, head of North America B2B at BABA. Here’s what he had to offer:
American SMBs – who account for 99.7% of all companies in the United States – need more ways to grow and compete in today’s economy and take advantage of the enormous opportunity in B2B e-commerce. Since our founding, Alibaba’s mission has been to make it easy to do business anywhere. With Office Depot, we will be able to offer SMBs more choice, greater access, and further opportunities to grow. We’ll accomplish this by leveraging Office Depot’s local relationships, capabilities, and expertise alongside Alibaba’s global platform, technologies, and proven marketplace model. Together, we see great opportunities to empower our customers and help them tap into the $23.9 trillion global B2B e-commerce market.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Office Depot, the news proved to be overwhelmingly positive. With the Alibaba partnership, the company will not only greatly expand its audience, but its product offering as well.
So, it’s not surprising to see that excited investors are pushing the stock on a run for the top in the market this morning. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:26), ODP is trading at $4.01 per share after a gain of $0.45 per share or 12.64% thus far this morning.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ODP. In particular, we’re interested in following the company’s collaboration with Alibaba and excited to see the revenue growth that comes as a result of it. Nonetheless, we’ll continue to follow the story cloely and bring the news to you as it breaks!
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