Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People's Republic of China and internationally. Alibaba is the house (really the company) that Jack Ma built. A former English teacher, Jack Ma cofounded and Alibaba and eventually made Jack the richest man in China, as well as one of the wealthiest people in the world.
Jack also created Singles Day. Singles Day is very similar to Amazon Prime day, but much, much larger ...like bigger both Black Friday and Cyber Monday combined. Last year, Singles Day sales hit $1 billion mark in 1 minute, 8 seconds. And within the first within the first hour, sales hit $12 billion, up 22% from last year. And within the first nine hours, sales hit $23 billion. And this year was no different.
Chinese e-commerce giant Alibaba (BABA) on Wednesday posted record sales for its annual Singles’ Day, topping $74 billion in gross merchandise volume (GMV). That's nearly double last year's total of $38.4 billion.
There was an added shadow over the event for Alibaba and its billionaire founder Jack Ma. Last week, Chinese regulators slammed the brakes on the highly anticipated IPO of Ant Group, Alibaba's financial affiliate, at the eleventh hour. Regulators cited "major issues" that might cause Ant "not to meet the listing conditions or disclosure requirements."
Ma publicly criticized Chinese regulators for stifling innovation, which industry watchers noted may have also played a role in the IPO getting pulled.
Even though many other online platforms and stores take part in Singles Day, it is still closely tied to Alibaba. And recent criticism of the annual event by government groups and state media could signal that Ma is still out of favor with Beijing.
The big Chinese tech companies have lose about $300 billion in market cap since Monday. Alibaba along has dropped $140 billion of market value and prompting some investors to reassess their holdings. But Jin Zi an Alibaba founding partner said despite the next 3-6 months being bumpy, Alibaba is still going to be a trillion-dollar company in the future.
An analyst at Raymond James said Wednesday that the stock’s pullback is an opportunity to buy Alibaba, which is trading around 19 times the earnings per share. Technically, the stock is a screaming buy as price is near both, a major daily resistance/support band and daily demand.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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