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Investors React to Jack Ma's Claim that Counterfeits are Better

Maher Syed

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”.

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.

Bottom Line:

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.

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