Look at the profit margins on $BABA, if I remember correctly it's in the 30%, $AMZN is in the 10%. Some investors don't fully understand BABA, they are scared because it is a Chinese company. Today, according to Google Finance, BABA's PE is 55, AMZN's PE is 179.
Do your own DD but BABA is growing fast and it is a threat to AMZN. If you missed out on AMZN, now is your chance.
Disclaimer: I am long BABA.
Alibaba is a nobrainer here.
Here is why: They are Amazon, Amazon Web Services, Uber, Netflix, a movie studio, Visa, Paypal, Ebay, investment advisor, credit rating agency, B2B, B2C, Youtube, and UPS all rolled up into one company that is protected by its country's government of 1.4 billion which only has an internet penetration rate of ~50%. There is massive growth to be unlocked both domestic and international. Many of the aforementioned business units are also vertically integrated, for example, BABA also owns a significant portion of the hardware vendors that supply servers for their Cloud business.
Think of their e-commerce. They own the cloud on which their websites for entertainment and commerce are hosted. They own the credit rating agency and payment methods for that commerce. They have a significant stake in the shipping network that then delivers the goods. Malaysia and Indonesia recently fought over who gets to have Jack Ma as their E-commerce advisor. Canada and Argentina recently signed deals with BABA. That's right, countries do business with BABA. BABA is the gateway into China for business now for both traditional commerce and e-commerce because their have the whole sale and retail channels locked down.
The best way to describe BABA in my opinion is that it is an ECONOMIC platform for an entire country.
written by texasyeehaw
Submitted May 15, 2017 at 11:26AM by lingx073 http://ift.tt/2qjUcWW
