In the midst of all the controversies and Alibaba Group Holding’s share going 20 percent this year, we still have faith in the e-commerce giant and believe that its share will increase and it has the potential for it.
Latest Alibaba news is that the company’s valuation is highly compelling. Its shares have been variant and struggling since the beginning. And there have been reports of Alibaba merchants performing fraudulent activity with government agency had become a dead end too.
The most uncertain factor for the quarter is monetization. The take rate has been missing the last year for desktop as the changes were made in the performance ranking algorithms and ad targeting ones. As the performance gets better, it should attract advertisers in large amount and also the factor of a better price with time but in the near term, the management is not expecting ricochet which is that conclusive. The expectations of the investors have been shrunk due to this.
Fraud and identity theft related activities are not an issue highly happening to Alibaba or only in the region of China. It occurs anywhere there are high chances of large transactions to happen. A marketplace with more than a merchandise value of $366 billion and active buyers that are up to 334 million is experienced by Alibaba. Also, Alibaba news report that it saw 8.5 million merchants last year.
The view on Alibaba has however not been changed. The company has become one of the most inspirational and compelling growth stories that have never happened in any sector or region. It is believed that China has a longtime growing retail opportunity and Alibaba is coming out as a dominant company in this regard. The recent concerns in the market are for a transitional period and exaggerated. It is advised for the investors to don’t stop investing in the company already. Because the investment will become long term and the company has a promising business model.
However, there are many people who believe that despite the early decline in the share growth for the company, it will become one of the biggest names globally. Its market in China has been growing and almost 80% of Chinese buy products online using this platform. The company is said to be on the way of making its mark globally now. It has entered the entertainment industry and is also monetizing the business to grow sustainably and rapidly towards globally acclaimed market.
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