not vested
Alibaba Earnings Rise as Revenues Continue to Soar
By Paul Ausick
Source: 247 Wall Street
http://247wallst.com/technology-3/2016/ ... Newsletter
Shares go for 23 times forward earnings on a long-term compound annual growth forecast of 25%.
If BABA can prove that these other revenue streams are for real, we should get some multiple expansion.
This year’s Singles Day sales “only” grew 32% from last year’s top line, to $17.79 billion.
A year ago, the day’s sales growth topped a whopping 60%. In 2014, sales growth was 58%. It’s an indication of saturation.
The red hot growth that made Alibaba stock such a must-have is winding down.
From here, the company will have to justify the value of BABA stock based on fundamentals and organic growth.
That’s relatively new territory. It may be a let-down when all’s said and done.
Morgan Stanley research suggests that in 2016, 34% of online shoppers are expected to buy groceries over the Internet, up from 21% in 2015.
A Mckinsey report suggests that 40% of Chinese consumers bought food online over the 2014-15 time frame.
A physical convenience store, which allows consumers to select these items physically and then order the rest of the items in-store via an app, can work well for consumers.
Morgan Stanley’s research shows that 67% of consumers who have never shopped for groceries online have not done so because they want to select the fresh products themselves.
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