# Alibaba BABA



## Pluto (Sep 12, 2013)

Drawing attention to BABA. they report earnings on thursday morning. 
Has a cloud business, AliPay business gaining global acceptance, and a platform for online selling. 
Big company showing substantial gains in revenue and earnings. This one could be a winner for years to come. 

Its not the typical stock that gets talked about on this forum, however, its good for dividend and etf investors to keep an eye out for the occasional growth story to add some nitro to your portfolio. 80/20 rule. you get 80% of your gains from 20% of your stocks.


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## fatcat (Nov 11, 2009)

i'm more conservative, i would be inclined to get in with CQQQ which is an etf that also gives you tencent and baidu

http://www.etf.com/CQQQ

it's the chinese equivalent of much loved QQQ


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## Pluto (Sep 12, 2013)

^
yes that a reasonable alternative to the risk of a single stock, I guess.


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## Drauss (Nov 29, 2016)

Pluto said:


> ^
> yes that a reasonable alternative to the risk of a single stock, I guess.



i own both Baba and Softbank and somewhat enjoyed reading this article:

http://www.insidermonkey.com/blog/l...g-ltd-baba-investors-should-read-this-605778/ 

Softbank’s primary operating business is its domestic wireless business. The wireless industry in Japan is an oligopoly as three players (NTT Docomo, KDDI and Softbank) control the market. The industry is mature with low churn and stable profitability. Softbank utilizes the cash flow from this business to diversify and grow its investment portfolio. Using a 6x EBITDA multiple, which is consistent with peers, we estimate that this business is worth $65 billion. Softbank’s other primary operating business is ARM Holdings, the U.K.-based licensor of microprocessor technologies that Softbank acquired last year for around $30 billion. Together, we value these businesses at ¥9,850 per share.

The bulk of Softbank’s remaining value comes from its public stakes in Alibaba, Sprint and Yahoo! Japan, as well as its significant portfolio of private investments. The company’s 25% stake in Alibaba is worth $120 billion, or ¥12,365 per Softbank share. Softbank also owns 85% of Sprint, a stake worth $24 billion, or ¥2,460 per share. Additionally, Softbank has a ¥1.3 trillion stake (¥1,175 per share) in Yahoo! Japan, a leading internet portal in Japan. While these public stakes alone amount to ¥16,000 per share (60% above the current share price), Softbank also has a portfolio of private investments, consisting primarily of stakes in leading ride hailing and e-commerce platforms in Asia. These investments are valued on the balance sheet at ¥2,300 per share. While we think there could be substantial upside to the private investments over time, we do not ascribe any premium. Together, Softbank’s public and private investments have a gross value of ¥18,300 per share. We think a substantial discount is being placed on Softbank’s public holdings due to the recent rapid appreciation in the value of the Alibaba stake and the market’s persistent focus on uncertainty around the company’s investment in Sprint. While Softbank shareholders have been slow to recognize the increased value of the Alibaba stake, we expect this significant value will ultimately be reflected in the stock price. And, while Sprint is undoubtedly a substantial holding for Softbank, it amounts to less than 15% of the total investment portfolio. Also, an expected merger with T-Mobile would represent a significant positive development as Sprint would become a scale number three player in the consolidated U.S. wireless market. We conservatively apply a 30% discount to all of its investments and arrive at a net value of ¥12,810 per share.


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## Pluto (Sep 12, 2013)

thanks for the info on softbank

BABA up to 191 in pre market. earnings report better be good.


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## jargey3000 (Jan 25, 2011)

just checked ...185.73 (-.35) .....buying opp?


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## Pluto (Sep 12, 2013)

^
Seems like it. EArnings and revenue were fine+. It should continue its upward trend for the time being. this is based on the assumption that the bull market continues. If the music stops, it will correct.


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## Pluto (Sep 12, 2013)

http://www.barrons.com/articles/alibaba-11-11-shopping-extravaganza-may-shatter-records-1510352405

This continues to be a good news stock.


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## redsgomarching (Mar 6, 2016)

5 billion in an hour..................


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## Pluto (Sep 12, 2013)

https://finance.yahoo.com/news/alibaba-group-holding-ltd-soon-110629340.html


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## jargey3000 (Jan 25, 2011)

I like their runway, in this space. not sure about their moat...(or the 40 Thieves!)
contemplating going "all-in" on this one!


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## Pluto (Sep 12, 2013)

"All in". Hope that doesn't mean betting the entire farm.


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## OnlyMyOpinion (Sep 1, 2013)

Bricks and mortar you say?

Recent article about Alibaba. The world of on-line and e-commerce face the same competitive challenges as most companies, there is no such thing as a 'slam dunk' success for investors. Remain diversified, never bet the farm on any single investment.

_"Unlike U.S. rival Amazon, which operates a direct sales model that relies on owning its own goods and logistics service, Alibaba became a $500 billion behemoth by building asset-light marketplaces. It matches sellers and buyers online, earning billions of dollars annually from associated advertising and commission fees. But it doesn’t have to spend heavily to manage products or logistics.

However, with growth in China’s entire online shopping market slowing, co-founder and Executive Chairman Jack Ma is ditching this asset-light philosophy. In recent months, Alibaba has expanded aggressively in logistics, cloud computing and brick-and-mortar retailing, seeking to use self-developed technologies such as data analytics to upgrade China’s $5 trillion retail sector. But pursuing these new opportunities comes at a price: Alibaba’s lucrative margin is likely to take a permanent hit from rapidly increasing operating costs, while returns from its latest expansion can take years to trickle in as the company experiments with the best monetization strategy, analysts say."_

https://www.forbes.com/sites/ywang/2018/05/09/jack-ma-takes-alibaba-on-a-new-path-for-better-or-worse/#5cbd3e1a656d


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## Pluto (Sep 12, 2013)

Been trading this for some months. So far, so good. Right now it seems to be on the verge of a breakout.


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## jargey3000 (Jan 25, 2011)

Pluto said:


> Been trading this for some months. So far, so good. Right now it seems to be on the verge of a breakout.


buying & selling pluto?
I just did the 1 buy/sell & took. small profit...


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## Pluto (Sep 12, 2013)

jargey3000 said:


> buying & selling pluto?
> I just did the 1 buy/sell & took. small profit...


yes, buying and selling once it became clear it was consolodating.


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## james4beach (Nov 15, 2012)

Jack Ma appears to have gone missing









Jack Ma's disappearing act fuels speculation about billionaire's whereabouts


Alibaba founder Jack Ma's absence from public view in the past two months, including missing the final episode of a TV show on which he was to appear as a judge, has fueled social media speculation over his whereabouts amid a Chinese regulatory clampdown on his sprawling...




www.reuters.com


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