Tag Archives: Alibaba

S&P 500 has gained about 2,5% in the past three months while Alibaba has jumped nearly 30%

Alibaba is a Chinese company I have been following since the first day they went public. It is also a company I have been trading with long before it went public, and shares have skyrocketed since then.

The Chinese giant is expected to report earnings on Thursday and investors must expect to see strong growth.

 

 

Alibabas growth will come in from online sales and cloud. According to Chinas National Bureau of Statistics, Alibaba`s retail sales growth jumped 41% YoY in June from 30% YoY in June. E-commerce penetration reached 18,6% in June this year.

The E-commerce giant is expected to benefit from improved spending trends in China. China Commerce is expected to grow 38% to $4,9 billion, and cloud computing & internet infrastructure is expected to grow a whopping 106,5% YoY to $369 million.

Just like Amazon, cloud computing is a growth engine for Alibaba, which is a $1 billion revenue run rate for the company. The company is improving thanks to its target marketing and bigger push on its mobile site.

S&P 500 has gained about 2,5% in the past three months while Alibaba has jumped nearly 30%. Shares are up about 60% in just six months. That`s strong growth.

The FactSet consensus if for revenue of $7,1 billion, which is up from $4,6 billion in the year earlier period.

Alibaba is expected to report earnings on 08/17/2017 before market open. Get ready for higher earnings and strong growth.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Alibaba with a massive Monster revenue growth of nearly 50% in 2017

Alibaba went public in 2014. The company is one of the world`s biggest with a market cap of 308,96 billion dollars. Its businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives.

Alibaba will go straight up from start today. Reason? The company is forecasting massive Monster revenue growth of nearly 50 percent in 2017. The target implies sales of up to $34,5 billion dollars, and this is the biggest underlying rise so far since its IPO in 2014.

 

 

The stock has gone straight up since its IPO in 2014 and the company is near its all-time high. Some investors are bullish but others are sceptical and warns of odd accounting and an opaque corporate structure.

Investors are divided in ways only stocks with strong charts and a shaky fundamentals tend to do.

To put the company in perspective, Amazones market cap is $478,81 billion. Amazons founder Jeff Bezos knew that the key to success in the market in electronic commerce was not to focus only on a bookstore.

Alibaba is more than a retailer. It also has Taobao, Tmall.com and Alipay to name a few. Over the past few years, it owns established businesses across commerce, cloud computing and media. So, the business model is very similar to Amazon.

Alibaba is the largest e-commerce player and cloud-computing provider in China. An exceptionally strong media empire that is underestimated with a strong growth outlook. Tmall TV is expanding. So are UCWeb, YouKu Tudou, Alibaba Music and Alisports.com in the category Media Entertainment.

Dimensional Fund Advisors LP purchased a new stake in shares of Alibaba Group Holding during the fourth quarter worth about $171,085,000. 35,17 percent of the stock is currently owned by hedge funds and other institutional investors.

Alibaba`s share price is $125,64 before the opening on Thursday. Goldman Sachs Group Inc reissued a «conviction-buy» rating and set a $135,00 price target on shares of Alibaba in a report on Friday, March 17th.

Watch out for Alibaba from start on Thursday. It will skyrocket.

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Groupon is laying off 1,100

I have never been a fan of Groupon, and when I say that it is not as a customer. Groupon has a business model that really makes the customers big winners in this game. Nothing wrong with that, but it is the businesses that is paying for the show, and they don`t want to lose.

The stock has been hammered. Take a look at the chart below.

GRPN

Groupon Inc operates online commerce marketplaces worldwide that connects merchants to consumers by offering goods and services at a discount. Groupon offers deals on goods and services in three categories: Local deals (Local), Groupon Goods (Goods) and Groupon Getaways (Travel).

Its deals are accessed directly through its Websites, mobile applications and search engines. It`s impressive to see that Groupon grew from $312 million to $3,19 billion from 2010 to 2014. But now, it seems like the glory days are over.

What have happened?

First of all; in my opinion, the biggest winner in this game is the customer. Who are saying no to a great deal? No one. The customers are not paying to Groupon. They are paying to Groupon`s customer, which is the most important thing for Groupon. No customers – no income.

Groupon`s customers need to cut the bill in half. Voila! Groupon`s customer have already lost 50% of the original price. The end customer is satisfied of course, because who say no to 50% discount? The end customer pay to Groupon`s customer, but out of that, another 50% must go to Groupon, which means there is only 25% left to the supplier.

It could have been a good way to promote the business, but it seems like the end customer is the big winner. It depends on what business it is but customers who are paying for the products are not loyal. They will hunt for other discounts other places.

Not only that. Groupon has got a lot of competition from other companies. They are attacked from all sides. They have competition from e-commerce platforms like Amazon, Alibaba and eBay to name a few.

Not only e-commerce platforms are doing the same. Social platforms like Twitter and Facebook have both launched their own «Buy now» buttons. Again; customer are the big winners. Discount here and discount there. Discount everywhere.

Let`s say you sell product A for $1000. If you have your own customer base on Facebook, you can start a 50% discount campaign and still have 50% left without giving half of that to Groupon. It doesn`t matter for your customers, because they have 50% anyway, but it matters to you.

The management need to do something very fast.

Groupon announced it would cut 10 percent of its workforce and cease operations in some areas overseas. The company still have a lot of cash, and in a filing with the SEC, they says the restructuring will require a one-time charge of up to $35 million.

What they need to do is start focusing on their customers. Not their customers customers.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. UA-63539824-1.

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Alibaba in Jerusalem

The Chinese Giant Alibaba that pulled off one of the biggest IPO`s in Wall Street`s history last year is partnering with Israeli venture capital firm JVP (Jerusalem Venture Partners). It is so much negative talk about Israel in the media, so why are Alibaba doing this?

This year it is 70 years since the Holocaust and the first genocide since the world war II was found in Bosnia in 1992. Thousands of Bosnian Muslim men and boys were killed, and it was «ethnic cleansing.» U.S Assistant Secretary of State Richard Holbrooke called Bosnia «the greatest failure of the West since the 1930`s.» It`s too much hate in Europe today.

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The Chinese people has another sight. They see human capital. They see talents. More Chinese people are seen in Iran as well as in Africa at the moment. The Chinese people are not killing them, but collaborate with them. They are friends.

The Chinese giant Alibaba is partnering with JVP which have $1 billion under management, attracted Alibaba`s attention with several of its recent «wins», exits for companies like security firm CyberArk and CyActive.

CyActie was recently bought by Paypal for $60 million and CyberArk was listed on Nasdaq in 2014. Some 20 JVP-invested firms have achieved exits since the company was established in 1993. In 2012, JVP was ranked as one of the top ten VC`s in the world.

JVP has had other notable successes, including early support and investment for XtremIO, which was sold to EMC in 2012 for close to $500b.

Alibaba has already invested $5 million in Visualead which is an Israel start-up that develops QR code technology. The investment with JVP will give Alibaba entrèe to the heart of the top technologies being developed in Israel today.

Israel`s most important tech industries is the cyber-security field and the world-wide market for cyber-security products, services and technologies was currently worth about $80 billion annually and rising, and Israel had about 10% of that. That makes Israel a power in cyber-security with great talents and great resources.

Accompanying the Alibaba executives who closed the deal with JVP is a group of Chinese investors and corporate executives, including Jason Lu, VP and Chief Risk Officer of Alipay, a subsidiary of Alibaba and one of China`s largest online payment firms.

Many of the world`s biggest companies are looking to Israel. Apple, which began operations in Israel in 2012 has about 700 employees in Israel, but work with more than 6,000 Israelis. Apple`s Herzliya R&D center is the second-largest in the world.

Along with hiring more Arabs, Israel has been encouraging tech companies to hire more woman and ultra-Orthodox Israelis. Increasing diversity in the workplace was a lesson Israel could learn from Apple. Keep in mind that Steve Job`s father was an Arab, born in Syria. Steve Jobs died in 2011, at the age of 56.

«True innovation can only result from full access to education for all, regardless of race, religion, or sex,» the president Rivlin said. Diversity is also an important issue to Cook himself.

Apple is one of the few companies that publishes a statistical breakdown of the gender and ethnic background of employees. Looking at diversity as «going far beyond the traditional categories of race, gender and ethnicity.

“It includes personal qualities that usually go unmeasured, like sexual orientation, veteran status, and disabilities. Who we are, where we come from, and what we’ve experienced influence the way we perceive issues and solve problems. We believe in celebrating that diversity and investing in it,” Tim Cook said.

Israel is very important to Apple and Tim Cook said that «Apple is in Israel because the engineering talent here is incredible. You guys are incredibly important to everything that we do and to all the products that we build.»

With multi-million dollar acquisitions and investments Indian companies also hope to tap into Israel`s flourishing innovation and start-up ecosystem. India`s industrial corporations are also increasingly looking to Israel for their innovation and technology needs.

India`s Tata Group is the lead investor in Tel Aviv University`s Technology Innovation Momentum Fund worth $20 million. The Indian Wipro has set up a Venture Capital arm with a war-chest of $100 million.

The Indian IT-giant Infosys announced the acquisitions of Panaya. An Israeli automation technology provider for estimated $200 million. Infosys is a global leader in IT-consulting and outsourcing. Their market cap is 41,01B.

They are looking for innovations that would give the company an edge over other global competitors. They reported a revenue of $8,25 billion in 2014 and shored up its existing start-up fund to $500 million.

War is stupid.

Human Capital and Team Work is the future.

 

 


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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Singles’ Day is the world’s biggest online retail sales day

Singles day (Guanggun Jie) is a day for people who are single and are the biggest online shopping day in the world, celebrated today on November 11 (11/11). The day is chosen for the connection between singles and the number 1.

singles-day

This day is very popular among young Chinese people, while singles organize parties and karaoke to meet new friends or try their fortunes. For breakfast on Singles day, singles often eat Youtiao which is deep-fried dough sticks. The day is also called Anti-Valentine`s day.

China`s Singles day has surpassed the U.S`s Black Friday by $9 billion in sales in just 24 hours. It makes the day the most profitable manufactured holiday in history. Alibaba is the biggest online company in China, and will profit from this day. Alibaba reported that they surpassed $2 billion after just 60 minutes today.

Jack Ma said in an interview that Alibaba will deliver about 260 million packages over the next three days, compared to 17 billion a day. Alibaba`s sales on Singles day have grown by 5,740% the last four years.

In 2011, Alibaba reached only $820 million, and in 2012, they did $3,04 billion. A great jump from 2011 to 2012, but in 2013 they reached $5,75 billion. Pretty impressive that too, but today they expect about $8,65 billion, according to industry tracker IDC.

IPO price for Alibaba was $68 per share and the stock is up 70% since their IPO day. Shoppers on the social media platform Weibo (China`s Twitter) complained the online deals were too good, tempting them to spend money they didn`t have.

The Singles day is expected to grow at an annual rate of 25% next year from $390 billion this year to £$719 billion in 2017. Singles day is by many retailers earmarked as an event like Christmas and Chinese New Year`s day.

Alibaba`s CEO expect the Single`s day to become a global holiday within five years.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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