Alibaba has made a couple of announcements in the past month that would kick its business into the high gear.
Alibaba Group Holding Limited is the biggest and largest retailer of the world and it proved it after the company surpassed the record of Gross Merchandize Volume (GMV) set by the US retailing giant, Wal-Mart Stores, Inc. It has been touching new milestones day after day however it’s one of the most important task is to improve the international market presence in the coming times. But it is facing a few issues as the overall performance is not what it previously was like.
At this point, everyone knows that Alibaba Group is seen as an under performer in the market when it went public 2 years back on September 19, 2014. The company was at a price of $68 per share and managed to raise a massive $25 billion in Initial Public Offering (IPO) which raised the value of the company to $168 billion two years ago. Now it is valued at around more than $230 billion or so in the market. Furthermore, in 2016 the BABA stocks are trading at $80 or below per share which gives investor or shareholder a return of 17.5 percent in the 19 months of its publicly traded life.
At this point, you need to take a look at the vaunted indices performance of the same tenure. it has been observed that the S&P is returned 4%, the Dow has returned 4% and Nasdaq has returned 7%. Isn't it quite amusing? This sounds more ridiculous when one hears how over-valued the markets are and how they are in dire need of trimming. Thus the response by some analyst is why there is a need of a trimming. However, it will be discussed later on with full details.
But as far as Alibaba Group is concerned, the days of petty returns are now long gone and the engine of the company is about to kick into the high gear. This can be proved as the Chinese tech giants made several big announcements in recent months that could change how it operates in the market.
Bloomberg reported last week that the Chinese e-commerce leader Alibaba is all set to go public with its financial arm Ant Financial as it readies it for an Initial Public Offering (IPO) this year. The financial affiliate was also close to raise a $3.5 billion funding round which would result in valuing Ant Financial $60 billion in the market. At this point, Alibaba owns about a third of its financial arm and receives nearly 37.5 percent of the pre tax earnings of Ant Financial that portrays an ownership stake worth $22.5 billion based on the $60 billion fund raising valuation.
Apart from this, Alibaba also confirmed its $1 billion investment in a Singaporean based startup, Lazada Group, which is operational in Thailand, Indonesia, Philippines, Singapore, and Vietnam.
Alibaba Group Holding Limited is the biggest and largest retailer of the world and it proved it after the company surpassed the record of Gross Merchandize Volume (GMV) set by the US retailing giant, Wal-Mart Stores, Inc. It has been touching new milestones day after day however it’s one of the most important task is to improve the international market presence in the coming times. But it is facing a few issues as the overall performance is not what it previously was like.
At this point, everyone knows that Alibaba Group is seen as an under performer in the market when it went public 2 years back on September 19, 2014. The company was at a price of $68 per share and managed to raise a massive $25 billion in Initial Public Offering (IPO) which raised the value of the company to $168 billion two years ago. Now it is valued at around more than $230 billion or so in the market. Furthermore, in 2016 the BABA stocks are trading at $80 or below per share which gives investor or shareholder a return of 17.5 percent in the 19 months of its publicly traded life.
At this point, you need to take a look at the vaunted indices performance of the same tenure. it has been observed that the S&P is returned 4%, the Dow has returned 4% and Nasdaq has returned 7%. Isn't it quite amusing? This sounds more ridiculous when one hears how over-valued the markets are and how they are in dire need of trimming. Thus the response by some analyst is why there is a need of a trimming. However, it will be discussed later on with full details.
But as far as Alibaba Group is concerned, the days of petty returns are now long gone and the engine of the company is about to kick into the high gear. This can be proved as the Chinese tech giants made several big announcements in recent months that could change how it operates in the market.
Bloomberg reported last week that the Chinese e-commerce leader Alibaba is all set to go public with its financial arm Ant Financial as it readies it for an Initial Public Offering (IPO) this year. The financial affiliate was also close to raise a $3.5 billion funding round which would result in valuing Ant Financial $60 billion in the market. At this point, Alibaba owns about a third of its financial arm and receives nearly 37.5 percent of the pre tax earnings of Ant Financial that portrays an ownership stake worth $22.5 billion based on the $60 billion fund raising valuation.
Apart from this, Alibaba also confirmed its $1 billion investment in a Singaporean based startup, Lazada Group, which is operational in Thailand, Indonesia, Philippines, Singapore, and Vietnam.