Alphabet (GOOGL) Stock Rises Thanks to Changes to Google’s E-Commerce Listings

Michael LaVere
  • GOOGL stock prices jumped 3.8 percent on Wednesday following a change in e-commerce listings.
  • Alphabet will allow businesses free listing on its Shopping tab in an effort to combat Amazon's market dominance. 

Alphabet (NASDAQ: GOOGL) stock rose after an announcement by the company to make major changes in the way it handled e-commerce listings. 

According to a report by Investors, GOOGL stock prices jumped 3.8% on Wednesday in response to Alphabet’s proposal to keep pace with Amazon (NASDAQ: AMZN) in the space of digital advertising.

Google Commerce President Bill Ready announced in a blog post that businesses will essentially be able to list products on Google’s shopping feature for free moving forward. 

The post reads, 

In light of these challenges, we’re advancing our plans to make it free for merchants to sell on Google. Beginning next week, search results on the Google Shopping tab will consist primarily of free listings, helping merchants better connect with consumers, regardless of whether they advertise on Google.

Cowen analyst John Blackledge said the decision by Google was in response to Amazon’s growing control over the market for e-commerce. 

He wrote in a note to clients, 

As Amazon continues to see rapid growth in its advertising business and arguably becomes more of a default lower funnel starting point for many products for consumers and particularly Amazon's Prime subscribers, we think Google's move is also a response to help the platform draw in additional consumers and retailers.

Colin Sebastian, an analyst at Baird, said the move was “clearly aimed at improving the consumer and merchant experience,” while eating into Amazon’s share of e-commerce searches. 

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Coinbase Preparing for Stock Market Listing as Early as This Year: Report

San Francisco-based cryptocurrency exchange Coinbase has reportedly started preparing for a stock market listing that could come as early as this year.

The move would make Coinbase the first major U.S.-based cryptocurrency exchange to go public, but the listing would require the U.S. Securities and Exchange Commission’s (SEC) blessing. According to Reuters, one source claimed the exchange is considering a direct listing instead of a traditional initial public offering (IPO).

While in an IPO new shares are created, underwritten and sold to the public, in a direct listing no new shares and created and only outstanding shares are sold, with no underwriters involved. Reuters quoted three people familiar with the matter, who requested anonymity because the listing preparations are reportedly confidential.

Coinbase has not yet registered its intention to go publish with the SEC, but has already reached out to investment banks and law firms. The cryptocurrency exchange was valued at $8 billion in its latest private fundraising round in 2018.

It was founded in 2012 and now has over 35 million users, allowing them to trade various cryptoassets both on its Coinbase platform and on the Coinbase Pro platform. It also has multiple other services, including Custody, Commerce, and Earn.

The San Francisco-based firm’s bitcoin holdings are estimated to now be over 1 million BTC, as users deposit funds on it over time. Last month Coinbase revealed it suffered outages after seeing its traffic spike significantly in a few minutes, as the price of most cryptocurrencies moved abruptly.

As CryptoGlobe reported, CryptoCompare’s June 2020 Exchange Review showed Coinbase was the third-largest top tier crypto exchange by trading volume in May, trading $6.86 billion worth of crypto throughout the month, falling behind OKEx and Binance.

Featured image via Unsplash.