Alibaba

By: Kristina, Grayson, and Suchita

About Alibaba Group
- Founded in 1999 by 18 people
- Led by Jack Ma
- (“Alibaba.com”)

- e-commerce platform
- Started AliPay
- Users can pay through Alibaba’s own platform
- AntFinancial
- “Gives financing to businesses”
- Alibaba is “pushing to enable business-to-
business and consumer-to-consumer
transactions”
- (Saiidi) https://www.forbes.com/companies/alibaba/
Alibaba Group Subsidiaries

Taobao Marketplace Alibaba.com Alibaba Cloud

Tmall 1688.com
Cainiao Network

AliExpress Alimama Ant Financial Services Group

http://www.alibabagroup.com/en/about/businesses
 What Alibaba Sells
- Agriculture and Food - Gifts, Sports & Toys
- Apparel, Textiles & Accessories - Health & Beauty
- Auto & Transportation - Home, Lights & Construction
- Bags, Shoes & Accessories - Machinery, Industrial Parts &
- Electronics Tools
- Electrical Equipment, - Raw and Processed Materials
Components & Telecoms - Packaging, Advertising & Office
(Alibaba.com)
Popular Stores, Products, and Suppliers

https://www.alibaba.com/ https://www.aliexpress.com/
Alibaba Group Mission
- “As part of the Alibaba Group, our mission is to make it easy to do business
anywhere.”
- “We do this by giving suppliers the tools necessary to reach a global audience
for their products, and by helping buyers find products and suppliers quickly
and efficiently.”
- (“About Alibaba.com”)
Jack Ma
- Net worth of 40.1 Billion USD
- Ma Yun, known professionally as
Jack Ma, is a chinese magnate,
investor, and philanthropist. He is
the founder and executive
chairman of Alibaba Group, a high-
technology conglomerate
- Graduated from Hangzhou
Teacher’s Institute
Who Uses Alibaba?

- Buyers from over 190 countries and

regions. (About Alibaba.com)
- More than 500 million people use
Alibaba’s app every month. (Saiidi)
- Alibaba “supports various international
partners interested in China’s large
consumer base.” (Kam)

http://activities.alibaba.com/alibaba/following-about-
alibaba.php?spm=a2700.8293689.0.0.uLFw5E&tracelog=foot
er_alibaba
Why you should invest in Alibaba
- “Alibaba claims 80% of all online Chinese retail sales.”
- (Kam)

- Alibaba is currently valued at $523 billion.

- Shares nearly doubled in 2017.
- “56 percent increase in third-quarter revenue, beating analysts’ expectations.”
- (“Alibaba revenue jumps 56%; the China retail giant also buys stake in Ant Financial”)

- “BABA was one of just seven stocks to be named one of U.S. News’ best
stocks to buy for 2018.” (Divine)
Why you should invest in Alibaba (Continued)
- “The Chinese e-commerce giant dominates
online retail in Asia’s largest economy”.
- “With China’s growing middle class, 1.3
billion people and 6 to 7 percent annual
GDP growth, China is on track to inevitably
surpass the U.S. as the largest economy in
the world sometimes in the next decade or
two.”
http://the-future-
economist.blogspot.com/2013/07/the-
unprecedented-growth-of-china.html
Let's Talk Money
- “Alibaba’s revenue increased from $992 million in 2011 to $23.5 billion
in 2017.”
- “Revenue appreciated 1300% and surged $22.58 billion” in six years.
- As of August 2017 “Alibaba’s (BABA) stock increased 74% YTD”.
- “The New York Stock Exchange (NYSE) shattered expectations by
listing Alibaba’s Initial Public Offering (IPO) for $25 billion, the largest
IPO in US history.”
- (Kam)

- $13.19 billion revenue from October-December period.

- “Revenue from Alibaba’s core commerce business rose 57.3 percent.”
- (“Alibaba revenue jumps 56%; the China retail giant also buys stake in Ant Financial”)
Alibaba will Continue to Get Better

- “As working wages climb

and disposable incomes
widen, Chinese spending
http://pinckneygriffin.com/7-ways-to-extra-cash/

power will follow suite.”

- Gorden Lam

https://www.racked.com/2017/4/2/15009104/shopping-
detox-life-death-mortality
 Challenges for Competitors

- “China’s particularly stringent censorship laws and

unique technological culture strings pose threatening
challenges to potential competitors.”
- “Alibaba’s familiarity with China’s unique tech
landscape allows the company to tailor online
shopping experiences for Chinese users, a problem
most foreign companies have yet to master.”
- (Kam) https://amvsmlm.com/challenges
Challenges for Competitors (Continued)
- “China’s rapidly changing economy and quirky technological culture require
extensive legal and cultural knowledge, two factors that give Alibaba an
edge”.
- (Kam)

https://yourstory.com/2016/02/fintech-india-regulatory-challenges/
 Competitors
- Amazon.com Inc
- eBay Inc http://phx.corporate-ir.net/phoenix.zhtml%3Fc=176060&p=irol-images_videos https://en.wikipedia.org/wiki/EBay

- Tencent
- JD.com
- Baidu
http://www.kpcb.com/companies/jd-com
https://www.techzim.co.zw/2016/09/chinas-new-
(Bajpai) valuable-company-tencent-owners-qq-wechat/

https://en.wikipedia.org/wiki/Baidu
 Why Alibaba is better than Amazon
- As of August 2017 Alibaba’s profit margin was 44%.
- Amazon’s profit margin was only 0.8%.
- “Unlike Amazon, Alibaba splits its e-commerce platform into specific subdivisions,
each catering to particular relations.”
- Amazon’s stock has a bias towards being over-valued.”
- “Gorden Lam makes a strong case that Alibaba is now a better investment than
Amazon.”
- (Kam)

- “While Amazon is focusing on expanding its e-commerce business in new

markets, Alibaba is investing in companies around the world - ranging beyond e-
commerce to also include virtual reality and social media.”
- (Saiidi)
“Alibaba’s staunch control of
the Chinese market staves
off fears of an Amazon
invasion.”
-Gorden Lam
http://www.endurancecyclist.com/Amazon-Price-
Smash_c_24.html
Gorden Lam:
“I think Alibaba is still in its early growth stage and I’d still
acquire more shares at current price”.
John Divine from U.S. News

“It’s hard to make a cogent argument that BABA

stock isn’t a steal at these levels”.
Future Plans
- “Alibaba is continuing a major push into brick-and-mortar retailing with plans
to add 30 supermarkets in Beijing.”
- “In November, Alibaba said it would invest $2.88 billion for 36% stake in Hong Kong based
Sun Art Retail”.
- Expanding retail in the food and grocery industry.
- (Deagon)

- “Alibaba Group Holding Ltd. plans to buy 15 percent stake in a chain of

Chinese home improvement and furniture stores as part of its pushing into
“new retail,””.
- Investing “$865 million in Beijing Easyhome Furnishing Chain Store Group Co.”.

(Nishizawa)
 Bibliography
"About Alibaba.com." Alibaba. http://activities.alibaba.com/alibaba/following-about-alibaba.php?spm=a2700.8293689.0.0.XADt0f&tracelog=footer_alibaba.

"Alibaba revenue jumps 56%; the China retail giant also buys stake in Ant Financial." CNBC. Last modified February 1, 2018. https://www.cnbc.com/2018/02/01/alibaba-
revenue-jumps-56-percent-the-china-retail-giant-also-buys-stake-in-ant-financial.html.

Bajpai, Prableen. "Alibaba's Top Competitors." Investopedia. https://www.investopedia.com/articles/investing/110714/alibabas-top-competitors.asp.

Deagon, Brian. "Alibaba Likely To Show Strongest Revenue Growth In 15 Quarters." Investor's Business Daily Technology. Last modified January 30, 2018.
https://www.investors.com/news/technology/alibaba-quarterly-earnings-report-december-quarter/.

Divine, John. "Alibaba Is One of the Best Stocks to Buy for 2018." U.S. News. Last modified January 8, 2018. https://money.usnews.com/investing/stock-market-
news/articles/2018-01-08/alibaba-group-holding-ltd-baba-stock.

Kam, Ken. "Top Manager Says Alibaba Is A Better Investment Than Amazon." Forbes. Last modified August 16, 2017.
https://www.forbes.com/sites/kenkam/2017/08/16/top-manager-says-alibaba-is-a-better-investment-than-amazon/#3085cf163d88.

Nishizawa, Kana. "Bloomberg." Alibaba to Invest $865 Million in China Home Improvement Chain. Last modified February 10, 2018.
https://www.bloomberg.com/news/articles/2018-02-11/alibaba-to-invest-865-million-in-china-home-improvement-chain.

"Our Businesses." Alibaba Group. http://www.alibabagroup.com/en/about/businesses.

Saiidi, Uptin. "Alibaba is much more than just China's e-commerce platform." CNBC. Last modified September 22, 2017. https://www.cnbc.com/2017/09/22/alibaba-is-
much-more-than-just-chinas-e-commerce-platform.html.