Alibaba's Bickering with Gov't Saps Investor Confidence
http://english.caixin.com/2015-01-30/100780284.html
China Dials Back Criticism of Alibaba on Counterfeit Goods
http://www.bloomberg.com/news/articles/ ... unterfeits
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Alibaba (BABA)/ 9988 HK; Jack Ma 01 (May 08 - Apr 16)
Re: Alibaba (BABA) / Jack Ma
by winston » Tue Feb 10, 2015 6:09 am
not vested
Alibaba scrapes the barrel as woes grow
Reuters has reported that a lawsuit has been filed in the US against Alibaba on behalf of investors who purchased its shares between October 21 and January 28.
The internet giant reportedly misled investors on the soundness of its business operations and financial condition.
The lawsuit further alleges that Alibaba failed to disclose it met State Administration of Industry and Commerce officials in Beijing in July, two months before its US$25 billion (HK$195 billion) IPO in the US.
During those meetings, officials advised Alibaba that they were going to clamp down on certain dubious and potentially illegal practices that were central to the core of its business.
On January 28, SAIC released a white paper, accusing Alibaba of engaging in illegal conduct disclosed to its executives at the July meetings.
Alibaba's stock price plummeted further after it reported revenues of just US$4.22 billion (HK$32.92 billion) for the fourth quarter of last year, below its US$4.45 billion target.
Its profits had fallen to US$964 million, a 28 percent decline from the fourth quarter in 2013.
Veteran investors should remember that the share price of Alibaba.com (1688), its locally-listed unit, was very volatile in the past.
Despite facing a lawsuit, Alibaba is still conducting business normally.
It just announced a US$590 million investment in Chinese mobile phone maker Meizu Telecom Equipment.
It intends to make Meizu an important part of Alibaba's wireless internet ecosystem.
Alibaba's share price has fallen from a peak of US$120 to US$85 in the past three months. It now trades at 35 times 2015 projected earnings, higher than the 31 times of Tencent (0700).
Some analysts have set Alibaba's target price at US$72.
Source: Dr Check, The Standard HK
Alibaba scrapes the barrel as woes grow
Reuters has reported that a lawsuit has been filed in the US against Alibaba on behalf of investors who purchased its shares between October 21 and January 28.
The internet giant reportedly misled investors on the soundness of its business operations and financial condition.
The lawsuit further alleges that Alibaba failed to disclose it met State Administration of Industry and Commerce officials in Beijing in July, two months before its US$25 billion (HK$195 billion) IPO in the US.
During those meetings, officials advised Alibaba that they were going to clamp down on certain dubious and potentially illegal practices that were central to the core of its business.
On January 28, SAIC released a white paper, accusing Alibaba of engaging in illegal conduct disclosed to its executives at the July meetings.
Alibaba's stock price plummeted further after it reported revenues of just US$4.22 billion (HK$32.92 billion) for the fourth quarter of last year, below its US$4.45 billion target.
Its profits had fallen to US$964 million, a 28 percent decline from the fourth quarter in 2013.
Veteran investors should remember that the share price of Alibaba.com (1688), its locally-listed unit, was very volatile in the past.
Despite facing a lawsuit, Alibaba is still conducting business normally.
It just announced a US$590 million investment in Chinese mobile phone maker Meizu Telecom Equipment.
It intends to make Meizu an important part of Alibaba's wireless internet ecosystem.
Alibaba's share price has fallen from a peak of US$120 to US$85 in the past three months. It now trades at 35 times 2015 projected earnings, higher than the 31 times of Tencent (0700).
Some analysts have set Alibaba's target price at US$72.
Source: Dr Check, The Standard HK
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Re: Alibaba (BABA) / Jack Ma
by behappyalways » Wed Mar 18, 2015 11:37 am
Alibaba loses its magic ahead of lockup expiry
http://www.cnbc.com/id/102510309
http://www.cnbc.com/id/102510309
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Re: Alibaba (BABA) / Jack Ma
by winston » Thu Mar 19, 2015 5:27 am
not vested
Alibaba investors face lock-up battered but largely unbowed
NEW YORK: As Alibaba was preparing to sell shares to U.S. investors for the first time, Jerry Verseput tried to persuade his clients not to throw money at the giant China-based e-commerce company because he thinks IPOs are a gamble, especially those with a lot of hype.
"I said if you want to go play with the money, I will do it for you but understand this is for entertainment purposes and not an investment strategy," said Verseput, president of Veripax Financial Management in Folsom, California, who manages about $65 million. For the two clients that insisted on buying stock, Verseput made sure they only invested less than one percent of their assets in the IPO.
That was probably good advice. Six months after Alibaba's IPO, the shares are down more than 29 percent from their November high. Alibaba opened on Sept. 19 at $92.70, ended its first day at $93.89 and reached its peak on November 13, when it hit $120. The stock closed Tuesday at $84.50, about 24 percent above the $68 IPO price.
Alibaba, which already commands 80 percent of the Chinese market and handles more ecommerce than Amazon and eBay combined, trades at a price-to-earnings ratio of about 30, compared with Seattle-based Amazon, which sports a three-digit P/E.
On Wednesday, a lock-up period expires allowing insiders owning a total of 437 million Alibaba shares sell. A larger lock-up of more than a billion shares held by insiders, including Yahoo! Inc expires in September. Some investors are worrying about further drops in the stock as insiders sell.
At TD Ameritrade, which typically serves retail investors, more than half of those who bought shares of Alibaba at the IPO still own the stock, while 24 percent sold within a month of buying.
"It's been ugly," said Alan Haft, a Newport, California-based financial adviser who said he "shamefully went on CNBC touting the stock" before the IPO and talked about a dozen of his clients into buying it. He says he still sees a good long term picture for Alibaba, but not right away. "The stock is probably going to get worse so in the short term it's a regret."
While some anticipate a small drop in the stock price Wednesday as a result of the lockup, many analysts believe the end of the lockup has already been priced in.
And given Alibaba's size, any selling will get absorbed easily, said Gil Luria, managing director of equity research for Wedbush Securities. The 25-day average trading volume for Alibaba is 14.5 million shares.
Still, the 437 million shares that go on sale on Wednesday exceed the 368 million it sold in the IPO. And some investors have come back down to earth after seeing its most recent quarterly results. While non-GAAP net income, which strips out exceptional items, rose 25 percent to 13.12 billion yuan ($2.1 billion) in the quarter ended December 2014, investors zeroed in on disappointing sales growth: revenue rose 40 percent from the previous year, down from a 53.7 percent gain in the September quarter.
Alibaba's underwhelming holiday quarter performance and a public verbal tussle with a powerful Chinese industry regulator helped trigger the stock's decline. They brought to the fore two major risks to further gains:: politics and the shift to mobile commerce. The lower-than-expected December-quarter revenue underscored how Alibaba earns less on smartphones and tablets as its users shift toward mobile shopping.
As of Feb 27, short interest in the stock came to almost 57 million shares, or 2.3 percent of Alibaba's outstanding stock (2.488 billion). That's more than double the 21 million shares as of Sept 30, when the Nasdaq began compiling data.
"Typically there is a lot of pent-up anticipation around the expiration but history shows that a vast majority of times that anticipation doesn't manifest," said Adam Sarhan, chief executive of Sarhan Capital in New York, who is short Alibaba shares. "When the time comes for expiration you don't see a big decline in the stock unless if there is something fundamentally wrong or something has happened to change the investment thesis."
Several of the biggest hedge fund managers, including Leon Cooperman's Omega Advisors, David Tepper's Appaloosa Management and Barry Rosenstein's Jana Partners LLC dissolved their stakes in Alibaba at the end of last year, while others reduced their holdings, according to U.S. regulatory filings.
Other money managers, like Haft, expect more rockiness in coming months, but think Alibaba will make them money.
COUNTERFEIT QUESTION
Alibaba's stock has taken a hit as Chinese regulators stepped up their scrutiny of counterfeit products on its ecommerce sites. In late January China's State Administration for Industry and Commerce issues a now-retracted report accusing Alibaba for allowing the sale of fake products on its sites, among other things.
However, Alibaba has ramped up its focus on identifying and removing counterfeits from its sites.
"I think in the longer term Alibaba is going to be a more credible company in the international market," Haft said. "It will take another six months to a year for the stock to cycle back, but I think the fundamentals of the company are strong."
September's lockup of 1.6 billion shares could have a bigger effect on the stock, but how much will depend on whether Alibaba has made significant progress on dealing with the counterfeiting issue, said Henry Guo, a senior analyst with Greenwich, Connecticut-based JG Capital Corp.
Robert H. Christie, an Alibaba spokesman, declined to comment.
As for Verseput's two clients, they're hanging on. "They are thinking it's a big company and 20 years from now it should be a good investment," he said.
Source: Reuters
Alibaba investors face lock-up battered but largely unbowed
NEW YORK: As Alibaba was preparing to sell shares to U.S. investors for the first time, Jerry Verseput tried to persuade his clients not to throw money at the giant China-based e-commerce company because he thinks IPOs are a gamble, especially those with a lot of hype.
"I said if you want to go play with the money, I will do it for you but understand this is for entertainment purposes and not an investment strategy," said Verseput, president of Veripax Financial Management in Folsom, California, who manages about $65 million. For the two clients that insisted on buying stock, Verseput made sure they only invested less than one percent of their assets in the IPO.
That was probably good advice. Six months after Alibaba's IPO, the shares are down more than 29 percent from their November high. Alibaba opened on Sept. 19 at $92.70, ended its first day at $93.89 and reached its peak on November 13, when it hit $120. The stock closed Tuesday at $84.50, about 24 percent above the $68 IPO price.
Alibaba, which already commands 80 percent of the Chinese market and handles more ecommerce than Amazon and eBay combined, trades at a price-to-earnings ratio of about 30, compared with Seattle-based Amazon, which sports a three-digit P/E.
On Wednesday, a lock-up period expires allowing insiders owning a total of 437 million Alibaba shares sell. A larger lock-up of more than a billion shares held by insiders, including Yahoo! Inc expires in September. Some investors are worrying about further drops in the stock as insiders sell.
At TD Ameritrade, which typically serves retail investors, more than half of those who bought shares of Alibaba at the IPO still own the stock, while 24 percent sold within a month of buying.
"It's been ugly," said Alan Haft, a Newport, California-based financial adviser who said he "shamefully went on CNBC touting the stock" before the IPO and talked about a dozen of his clients into buying it. He says he still sees a good long term picture for Alibaba, but not right away. "The stock is probably going to get worse so in the short term it's a regret."
While some anticipate a small drop in the stock price Wednesday as a result of the lockup, many analysts believe the end of the lockup has already been priced in.
And given Alibaba's size, any selling will get absorbed easily, said Gil Luria, managing director of equity research for Wedbush Securities. The 25-day average trading volume for Alibaba is 14.5 million shares.
Still, the 437 million shares that go on sale on Wednesday exceed the 368 million it sold in the IPO. And some investors have come back down to earth after seeing its most recent quarterly results. While non-GAAP net income, which strips out exceptional items, rose 25 percent to 13.12 billion yuan ($2.1 billion) in the quarter ended December 2014, investors zeroed in on disappointing sales growth: revenue rose 40 percent from the previous year, down from a 53.7 percent gain in the September quarter.
Alibaba's underwhelming holiday quarter performance and a public verbal tussle with a powerful Chinese industry regulator helped trigger the stock's decline. They brought to the fore two major risks to further gains:: politics and the shift to mobile commerce. The lower-than-expected December-quarter revenue underscored how Alibaba earns less on smartphones and tablets as its users shift toward mobile shopping.
As of Feb 27, short interest in the stock came to almost 57 million shares, or 2.3 percent of Alibaba's outstanding stock (2.488 billion). That's more than double the 21 million shares as of Sept 30, when the Nasdaq began compiling data.
"Typically there is a lot of pent-up anticipation around the expiration but history shows that a vast majority of times that anticipation doesn't manifest," said Adam Sarhan, chief executive of Sarhan Capital in New York, who is short Alibaba shares. "When the time comes for expiration you don't see a big decline in the stock unless if there is something fundamentally wrong or something has happened to change the investment thesis."
Several of the biggest hedge fund managers, including Leon Cooperman's Omega Advisors, David Tepper's Appaloosa Management and Barry Rosenstein's Jana Partners LLC dissolved their stakes in Alibaba at the end of last year, while others reduced their holdings, according to U.S. regulatory filings.
Other money managers, like Haft, expect more rockiness in coming months, but think Alibaba will make them money.
COUNTERFEIT QUESTION
Alibaba's stock has taken a hit as Chinese regulators stepped up their scrutiny of counterfeit products on its ecommerce sites. In late January China's State Administration for Industry and Commerce issues a now-retracted report accusing Alibaba for allowing the sale of fake products on its sites, among other things.
However, Alibaba has ramped up its focus on identifying and removing counterfeits from its sites.
"I think in the longer term Alibaba is going to be a more credible company in the international market," Haft said. "It will take another six months to a year for the stock to cycle back, but I think the fundamentals of the company are strong."
September's lockup of 1.6 billion shares could have a bigger effect on the stock, but how much will depend on whether Alibaba has made significant progress on dealing with the counterfeiting issue, said Henry Guo, a senior analyst with Greenwich, Connecticut-based JG Capital Corp.
Robert H. Christie, an Alibaba spokesman, declined to comment.
As for Verseput's two clients, they're hanging on. "They are thinking it's a big company and 20 years from now it should be a good investment," he said.
Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Alibaba (BABA) / Jack Ma
by winston » Thu Mar 19, 2015 6:34 am
BABA Stock – Sell Alibaba ASAP Before Declines Get Worse
Alibaba faces big pressure from big lockup expirations
By Jeff Reeves
Source: InvestorPlace.com
http://investorplace.com/2015/03/baba-s ... Qn9XdKUd1Y[flash=][/flash]
Alibaba faces big pressure from big lockup expirations
By Jeff Reeves
Source: InvestorPlace.com
http://investorplace.com/2015/03/baba-s ... Qn9XdKUd1Y[flash=][/flash]
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Alibaba (BABA) / Jack Ma
by winston » Sun Apr 12, 2015 7:42 am
not vested
An interesting Chinese stock that isn't soaring is Chinese Internet retail giant Alibaba (BABA).
Last year, Alibaba was the source of incredible media hype when it went public on the U.S. exchanges. It's a $200 billion juggernaut that many say is like "China's Amazon and eBay." This makes it a top holding of growth-stock-focused mutual-fund and hedge-fund managers.
As you can see from the chart below, Alibaba soared after its initial public offering (IPO)… but that hype has worn off.
The stock has declined from a high of $119 per share to around $85 per share (a nearly 30% fall).
If the uptrend in China continues, I expect Alibaba's status as a premier Chinese growth stock to lift it back to more than $100 per share…
Source: Growth Stock Wire
An interesting Chinese stock that isn't soaring is Chinese Internet retail giant Alibaba (BABA).
Last year, Alibaba was the source of incredible media hype when it went public on the U.S. exchanges. It's a $200 billion juggernaut that many say is like "China's Amazon and eBay." This makes it a top holding of growth-stock-focused mutual-fund and hedge-fund managers.
As you can see from the chart below, Alibaba soared after its initial public offering (IPO)… but that hype has worn off.
The stock has declined from a high of $119 per share to around $85 per share (a nearly 30% fall).
If the uptrend in China continues, I expect Alibaba's status as a premier Chinese growth stock to lift it back to more than $100 per share…
Source: Growth Stock Wire
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Alibaba (BABA) / Jack Ma
by winston » Mon Apr 27, 2015 3:22 pm
Vested
Jan 29, 2015
Alibaba quarterly revenue disappoints, shares fall
(Reuters) - Alibaba Group Holding Ltd's (BABA.N) shares fell more than 10 percent early on Thursday, wiping more than $25 billion of market value after third quarter revenue at the Chinese internet giant fell short of analysts' expectations.
Revenue at the world's largest e-commerce company rose 40 percent to $4.22 billion in the December quarter, short of the average analyst estimate of $4.45 billion, according to Thomson Reuters I/B/E/S.
Earnings per share (EPS), calculated to exclude one-off and extraordinary items, beat estimates of $0.75, coming in at $0.81.
But investors appeared to have other concerns, four months after the company's $25 billion IPO.
"Today's (stock price drop) is not about EPS, it's about the top line growth," said Tian Hou, a Beijing-based analyst with TH Capital.
"When Alibaba said they were expanding, investing, people's expectations were for top line growth and the bottom line would shrink. However they did the opposite, so that was contradictory to expectations."
Even strong numbers for mobile revenues and total value of goods sold on smartphones, closely watched metrics in the world's biggest smartphone market, weren't enough to stop the Wall Street-listed stock being hammered as trading began on the New York Stock Exchange.
Shares were down almost 10 percent at 10:28 a.m. ET at $88.75.
RELATED COVERAGE
› Some investors still gaga for Alibaba despite revenue miss
Alibaba did not address Tuesday's announcement that its second-biggest shareholder Yahoo Inc (YHOO.O) plans to spin off its 15 percent stake in the Chinese company.
But Alibaba's Executive Vice Chairman Joe Tsai did use the post-results conference call to take a shot at a Chinese regulator, after the watchdog called out the company in a report published on Wednesday for failing to do enough to stamp out illegal business on its platforms.
Tsai said the report was "flawed" and assured listeners that Alibaba had not seen the report before it was published, nor had it requested its publication to be delayed. The report by the State Administration for Industry and Commerce (SAIC) sparked concern that Alibaba had failed to disclose risk factors to its investors prior to its bumper listing in September.
SLIPPING GROWTH
Revenue growth, at its lowest level since at least 2013, and margins slipped as sales through mobile devices, typically smaller-ticket items, accounted for a bigger slice of total sales than in the previous quarter.
Gross merchandise volume (GMV), or the sum of all Alibaba's online commerce transactions, rose 49 percent to $127 billion. Mobile GMV continued to grow, accounting for 42 percent of total GMV, up from 36 percent in the September quarter.
The number of mobile monthly active users nearly doubled from the same quarter the previous year to 265 million. Overall annual active buyers grew 45 percent to 334 million from 307 million in the September quarter - exceeding the population of the United States.
Source: Reuters
Jan 29, 2015
Alibaba quarterly revenue disappoints, shares fall
(Reuters) - Alibaba Group Holding Ltd's (BABA.N) shares fell more than 10 percent early on Thursday, wiping more than $25 billion of market value after third quarter revenue at the Chinese internet giant fell short of analysts' expectations.
Revenue at the world's largest e-commerce company rose 40 percent to $4.22 billion in the December quarter, short of the average analyst estimate of $4.45 billion, according to Thomson Reuters I/B/E/S.
Earnings per share (EPS), calculated to exclude one-off and extraordinary items, beat estimates of $0.75, coming in at $0.81.
But investors appeared to have other concerns, four months after the company's $25 billion IPO.
"Today's (stock price drop) is not about EPS, it's about the top line growth," said Tian Hou, a Beijing-based analyst with TH Capital.
"When Alibaba said they were expanding, investing, people's expectations were for top line growth and the bottom line would shrink. However they did the opposite, so that was contradictory to expectations."
Even strong numbers for mobile revenues and total value of goods sold on smartphones, closely watched metrics in the world's biggest smartphone market, weren't enough to stop the Wall Street-listed stock being hammered as trading began on the New York Stock Exchange.
Shares were down almost 10 percent at 10:28 a.m. ET at $88.75.
RELATED COVERAGE
› Some investors still gaga for Alibaba despite revenue miss
Alibaba did not address Tuesday's announcement that its second-biggest shareholder Yahoo Inc (YHOO.O) plans to spin off its 15 percent stake in the Chinese company.
But Alibaba's Executive Vice Chairman Joe Tsai did use the post-results conference call to take a shot at a Chinese regulator, after the watchdog called out the company in a report published on Wednesday for failing to do enough to stamp out illegal business on its platforms.
Tsai said the report was "flawed" and assured listeners that Alibaba had not seen the report before it was published, nor had it requested its publication to be delayed. The report by the State Administration for Industry and Commerce (SAIC) sparked concern that Alibaba had failed to disclose risk factors to its investors prior to its bumper listing in September.
SLIPPING GROWTH
Revenue growth, at its lowest level since at least 2013, and margins slipped as sales through mobile devices, typically smaller-ticket items, accounted for a bigger slice of total sales than in the previous quarter.
Gross merchandise volume (GMV), or the sum of all Alibaba's online commerce transactions, rose 49 percent to $127 billion. Mobile GMV continued to grow, accounting for 42 percent of total GMV, up from 36 percent in the September quarter.
The number of mobile monthly active users nearly doubled from the same quarter the previous year to 265 million. Overall annual active buyers grew 45 percent to 334 million from 307 million in the September quarter - exceeding the population of the United States.
Source: Reuters
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Re: Alibaba (BABA) / Jack Ma
by winston » Tue Apr 28, 2015 4:51 pm
not vested
Jack Ma: Alibaba will freeze number of employees
Alibaba held the staff meeting in Beijing days ago. The chairman Jack Ma reaffirmed that he would like to provide a development platform for 10 million enterprises and create 100 million job opportunities in the world.
On the other hand, he mentioned the group will freeze its number of employees this year and the current level at over 30,000 staff is quite adequate.
He would like to look for a new management model in the coming 3 to 5 years while the group's revenue may be affected in 2015.
Source: AAStocks Financial News
Jack Ma: Alibaba will freeze number of employees
Alibaba held the staff meeting in Beijing days ago. The chairman Jack Ma reaffirmed that he would like to provide a development platform for 10 million enterprises and create 100 million job opportunities in the world.
On the other hand, he mentioned the group will freeze its number of employees this year and the current level at over 30,000 staff is quite adequate.
He would like to look for a new management model in the coming 3 to 5 years while the group's revenue may be affected in 2015.
Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 111922
- Joined: Wed May 07, 2008 9:28 am
Re: Alibaba (BABA) / Jack Ma
by winston » Mon May 04, 2015 7:25 pm
not vested
April 30, 2015
How to Play BABA Stock as Alibaba Earnings Date Nears By KYLE ANDERSON
The Alibaba earnings date is set for May 7. The company is expected to report earnings per share (EPS) of $0.43 and revenue of $2.78 billion.
But with the Alibaba Group Holding Ltd. (NYSE: BABA) earnings date just around the corner, some investors are worrying about a recent statement from the company's founder Jack Ma.
This week, Ma said his company "has really developed too quickly." He's starting a hiring freeze that will last through 2015.
At the end 2014, Alibaba had 34,081 employees. That was a 63% gain from 2013's employee count.
The news has hit BABA stock, which has fallen nearly 3% from Monday. It closed at $82.45 Wednesday.
That pushes BABA's total 2015 decline to 21%.
Now investors who heard so much about BABA's potential leading up to the record-breaking $25 billion IPO are wondering what to do with the stock.
Here's the deal: Despite the recent hiccups, Alibaba stock is one of the best long-term buys on the market today.
In fact, Money Morning's Defense and Tech Specialist Michael Robinson says Alibaba "could be the single-greatest wealth opportunity of our lifetime."
Here are three reasons why we're long-term bulls on BABA stock…
Three Reasons to Be Bullish on Alibaba Stock Now
The first reason to be bullish on Alibaba is its home market.
In 2013, online shopping in China was a $298 billion industry. That surpassed the United States as the largest e-commerce market in the world.
The market is growing too. The management consulting firm AT Kearny estimates it will be worth $718 billion by 2017. A recent study by the China Internet Network Information Center (CNNIC) determined the number of Internet users in the country will hit 800 million by 2016 or sooner.
"Alibaba is gaining traction in its home market in China just as that country's people are truly joining the Internet revolution," Robinson said. "And the development of easy-to-use mobile commerce is giving Alibaba a strong tailwind."
The second reason to be bullish is Alibaba's mobile push.
Last quarter, Alibaba reported 265 million mobile monthly active users. That was yearly increase of 95%.
According to the research firm Gartner, mobile payment transactions will grow by 35% annually through 2017. The global market for mobile payments will reach $721 billion by the end of 2017.
Alibaba is seeing the impact of that market growth. In last quarter's earnings report, gross merchandise volume from mobile platforms increased 213%.
Finally, the third reason we're bulls on Alibaba stock is the company's rock-solid financials.
This quarter revenue should grow nearly 44%. That's incredible growth for a company bringing in $2.8 billion per quarter.
Operating margins are strong, too, at almost 37%. The company has more than $6 billion in operating cash flow, which gives it great flexibility for acquisitions.
Gross merchandise volume has been on the rise as well. Last quarter, the company reported that GMV was up 49%. That was spurred by a user base that grew to 334 million people – more than the entire population of the United States.
Now that we've outlined why we're bullish on BABA stock, here's the single best strategy for investing in BABA stock…
How to Invest in BABA Stock Ahead of the Alibaba Earnings Date
Alibaba is a great stock to invest in little by little.
"Alibaba is not a 'back-up-the-truck-and-invest-all-you-have' stock," said Money Morning's Executive Editor Bill Patalon. "It's a stock you want to accumulate over time, using sell-offs like this one as opportunities to add to your holdings."
And Patalon said you can invest in BABA for "pennies" at a time thanks to the way discount and online brokerages have revolutionized trading for retail investors – slashing fees and taking away the onus of buying shares in "odd lots."
If you accumulate shares and let this investment ride over time, you can be rewarded.
Source: Money Morning
April 30, 2015
How to Play BABA Stock as Alibaba Earnings Date Nears By KYLE ANDERSON
The Alibaba earnings date is set for May 7. The company is expected to report earnings per share (EPS) of $0.43 and revenue of $2.78 billion.
But with the Alibaba Group Holding Ltd. (NYSE: BABA) earnings date just around the corner, some investors are worrying about a recent statement from the company's founder Jack Ma.
This week, Ma said his company "has really developed too quickly." He's starting a hiring freeze that will last through 2015.
At the end 2014, Alibaba had 34,081 employees. That was a 63% gain from 2013's employee count.
The news has hit BABA stock, which has fallen nearly 3% from Monday. It closed at $82.45 Wednesday.
That pushes BABA's total 2015 decline to 21%.
Now investors who heard so much about BABA's potential leading up to the record-breaking $25 billion IPO are wondering what to do with the stock.
Here's the deal: Despite the recent hiccups, Alibaba stock is one of the best long-term buys on the market today.
In fact, Money Morning's Defense and Tech Specialist Michael Robinson says Alibaba "could be the single-greatest wealth opportunity of our lifetime."
Here are three reasons why we're long-term bulls on BABA stock…
Three Reasons to Be Bullish on Alibaba Stock Now
The first reason to be bullish on Alibaba is its home market.
In 2013, online shopping in China was a $298 billion industry. That surpassed the United States as the largest e-commerce market in the world.
The market is growing too. The management consulting firm AT Kearny estimates it will be worth $718 billion by 2017. A recent study by the China Internet Network Information Center (CNNIC) determined the number of Internet users in the country will hit 800 million by 2016 or sooner.
"Alibaba is gaining traction in its home market in China just as that country's people are truly joining the Internet revolution," Robinson said. "And the development of easy-to-use mobile commerce is giving Alibaba a strong tailwind."
The second reason to be bullish is Alibaba's mobile push.
Last quarter, Alibaba reported 265 million mobile monthly active users. That was yearly increase of 95%.
According to the research firm Gartner, mobile payment transactions will grow by 35% annually through 2017. The global market for mobile payments will reach $721 billion by the end of 2017.
Alibaba is seeing the impact of that market growth. In last quarter's earnings report, gross merchandise volume from mobile platforms increased 213%.
Finally, the third reason we're bulls on Alibaba stock is the company's rock-solid financials.
This quarter revenue should grow nearly 44%. That's incredible growth for a company bringing in $2.8 billion per quarter.
Operating margins are strong, too, at almost 37%. The company has more than $6 billion in operating cash flow, which gives it great flexibility for acquisitions.
Gross merchandise volume has been on the rise as well. Last quarter, the company reported that GMV was up 49%. That was spurred by a user base that grew to 334 million people – more than the entire population of the United States.
Now that we've outlined why we're bullish on BABA stock, here's the single best strategy for investing in BABA stock…
How to Invest in BABA Stock Ahead of the Alibaba Earnings Date
Alibaba is a great stock to invest in little by little.
"Alibaba is not a 'back-up-the-truck-and-invest-all-you-have' stock," said Money Morning's Executive Editor Bill Patalon. "It's a stock you want to accumulate over time, using sell-offs like this one as opportunities to add to your holdings."
And Patalon said you can invest in BABA for "pennies" at a time thanks to the way discount and online brokerages have revolutionized trading for retail investors – slashing fees and taking away the onus of buying shares in "odd lots."
If you accumulate shares and let this investment ride over time, you can be rewarded.
Source: Money Morning
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winston - Billionaire Boss
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Re: Alibaba (BABA) / Jack Ma
by winston » Tue May 05, 2015 8:06 pm
not vested
Alibaba: Analysts Cautious Ahead Of Earnings By Shuli Ren
Alibaba Group (BABA) will report its first-quarter earnings before the market opens on May 7.
Wall Street analysts from Deutsche Bank to MKM Partners sounded a cautious note in their earnings preview.
Alibaba, which also relies on the advertising model, likely will face the same challenge as China’s Google Baidu (BIDU), whose revenue growth in the first-quarter slowed due to the lunar Chinese New Year, which occurred in February, as well as a ramp-up of user mobile usage, which does not bring in as much money as the PC platform.
In the December quarter, mobile contributed to 42% of the transactions conducted on Alibaba’s platforms. “Mobile is growing nicely,” noted Deutsche Bank‘s Alan Hellawell III and team, who expect mobile to contribute to 47% of Alibaba’s gross merchandize value (GMV), “due to mobile adoption in urban areas and even faster mobile e-commerce penetration in lower tier markets.”
But mobile penetration is a mixed blessing, because it does not bring in as much money as the PC, yet. The bank expects Alibaba’s take-rate to fall by 8 basis points from a year ago. See my February 13 column “Mobile Jolts Alibaba, Baidu “ for background information.
Apart from the seasonally weak March quarter from the Chinese New Year, “redoubled efforts to combat fraud with stricter criteria imposed on Tmall and Taobao merchants, will likely drive down GMV QoQ,” noted Deutsche. As such, the bank expects Alibaba’s revenue to rise by only 37% from a year ago. For comparison purposes, in December quarter, Alibaba’s revenue rose 53.7%. Deutsche’s estimate is in line with the street.
Investors are cautious ahead of the earnings, noted MKM Partners after looking at options and short interests:
The options markets are implying about a 7% move, but trading history is limited with only two previous quarters as a public company. [b]Short interest of 57mn shares [/b]has increased 37% qtr/qtr and is 3.5-days to cover. Sentiment is near-term cautious and long-term positive.
The research firm lowered its price target on Alibaba from $125 to $115. Truthfully, it price target is way too high – Alibaba closed at $80.59 and the street consensus target is $107.20, according to Factset.
The research firm also lowered its price target from $125 to $115. But the reality is, MKM Partners was way off: Alibaba closed at $80.59 on Monday and the street consensus target is $107.20, according to Factset.
Source: Barron's Asia
Alibaba: Analysts Cautious Ahead Of Earnings By Shuli Ren
Alibaba Group (BABA) will report its first-quarter earnings before the market opens on May 7.
Wall Street analysts from Deutsche Bank to MKM Partners sounded a cautious note in their earnings preview.
Alibaba, which also relies on the advertising model, likely will face the same challenge as China’s Google Baidu (BIDU), whose revenue growth in the first-quarter slowed due to the lunar Chinese New Year, which occurred in February, as well as a ramp-up of user mobile usage, which does not bring in as much money as the PC platform.
In the December quarter, mobile contributed to 42% of the transactions conducted on Alibaba’s platforms. “Mobile is growing nicely,” noted Deutsche Bank‘s Alan Hellawell III and team, who expect mobile to contribute to 47% of Alibaba’s gross merchandize value (GMV), “due to mobile adoption in urban areas and even faster mobile e-commerce penetration in lower tier markets.”
But mobile penetration is a mixed blessing, because it does not bring in as much money as the PC, yet. The bank expects Alibaba’s take-rate to fall by 8 basis points from a year ago. See my February 13 column “Mobile Jolts Alibaba, Baidu “ for background information.
Apart from the seasonally weak March quarter from the Chinese New Year, “redoubled efforts to combat fraud with stricter criteria imposed on Tmall and Taobao merchants, will likely drive down GMV QoQ,” noted Deutsche. As such, the bank expects Alibaba’s revenue to rise by only 37% from a year ago. For comparison purposes, in December quarter, Alibaba’s revenue rose 53.7%. Deutsche’s estimate is in line with the street.
Investors are cautious ahead of the earnings, noted MKM Partners after looking at options and short interests:
The options markets are implying about a 7% move, but trading history is limited with only two previous quarters as a public company. [b]Short interest of 57mn shares [/b]has increased 37% qtr/qtr and is 3.5-days to cover. Sentiment is near-term cautious and long-term positive.
The research firm lowered its price target on Alibaba from $125 to $115. Truthfully, it price target is way too high – Alibaba closed at $80.59 and the street consensus target is $107.20, according to Factset.
The research firm also lowered its price target from $125 to $115. But the reality is, MKM Partners was way off: Alibaba closed at $80.59 on Monday and the street consensus target is $107.20, according to Factset.
Source: Barron's Asia
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 111922
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