People around the world are baffled over recent comments made by Alibaba’s BABA CEO, Jack Ma. On the 13th of June, Mr. Ma claimed that counterfeit goods are superior to authentic products in terms of quality.
The e-commerce giant has been marred in controversy for not stepping up efforts to deter counterfeit goods from being sold on its online platform. These conflicting words from the company’s CEO are not helping to better BABA’s image. Here’s how investors are reacting to Jack Ma’s belief that “the fake products today are of better quality…than the real names”.
Jack Ma said fakes are better than originals. Not sure if this'll help in the counterfeit allegations against $BABA https://t.co/ElHa4IBYeS— Saheli Roy Choudhury (@sahelirc) June 15, 2016
Looks like #Alibaba's #JackMa just gave a big green light to #counterfeit-ers: https://t.co/mC4mwJR560 #intellectualproperty #China $BABA— (((Alan Tonelson))) (@AlanTonelson) June 14, 2016
LOL like i said. Once Alibaba's counterfeit products become exposed by our legal system, $BABA will be cut in half https://t.co/VT2ZtNXYd9— 500pagesAday (@500pagesAday) June 14, 2016
After praising counterfeit products, #JackMa @AlibabaGroup is making up the nos at will - forecasts growth rising 48% YoY - $BABA baloney...— Market Farce (@Market_Farce) June 14, 2016
China-made counterfeit goods better than the real thing, complicating efforts to weed out fakes: Alibaba's Ma. https://t.co/TkttbidlYo $BABA— bored2tears (@bored2tears) June 14, 2016
Our funny man and editor of the Momentum Trader and Home Run Investor services, David Bartosiak, does a great job of summing up why Jack Ma’s claim is so controversial.
Alibaba is not doing a great job with regards to banning counterfeit sellers from its trading platform. This is nothing new for the company though. What’s really strange is the fact that Jack Ma is making comments which may have the potential to spur an increased demand for counterfeit goods. Jack Ma states that he and his company “are world-leading fighters against counterfeits”. It seems that the opposite is true. Instead of being a leading fighter, Jack Ma has made a ludicrous claim, arguably making him the largest advocate for purchasing counterfeit goods.
The Zacks Rank is a truly marvelous trading tool. Our ranking system has beaten the S&P 500, yielding an average return of 25% per year for the last 29 years! Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ALIBABA GROUP (BABA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research