|Bid||274.53 x 1000|
|Ask||279.90 x 1100|
|Day's Range||272.46 - 278.28|
|52 Week Range||188.05 - 289.69|
|Beta (3Y Monthly)||0.51|
|PE Ratio (TTM)||41.28|
|Earnings Date||Nov 12, 2019 - Nov 18, 2019|
|Forward Dividend & Yield||4.16 (1.52%)|
|1y Target Est||301.71|
It would seem like the news has been pretty good of late for Alibaba Group (NYSE:BABA) stock … with one obvious exception. The last two earnings reports have looked impressive. The overhang of a major stockholder is ending. And yet Alibaba stock has stayed stuck, trading sideways since February.Source: Nopparat Khokthong / Shutterstock.com To be sure, the U.S.-China trade war presents an apparent stumbling block in front of BABA stock. But rival JD.com (NASDAQ:JD) has outperformed Alibaba shares of late, while facing the same trade-driven macro headwinds at home.JD isn't the only Chinese stock with better returns. Yes, Alibaba Group shares have returned 27% so far this year. That's better than the 16% average of China's 21 U.S.-listed large-cap (>$10 billion) stocks. But that return puts BABA stock just seventh in the group, well behind leaders New Oriental Education & Technology Group (NYSE:EDU) and Pinduoduo (NASDAQ:PDD), the latter of which has almost doubled in the last two-plus months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo, relative underperformance, a cheap valuation, and Alibaba's market-leading status would seem to clear a path for BABA stock to finally break through $200 and beyond. After all, it's hard (though not impossible) to see external conditions being much worse, yet Alibaba has grown earnings and Alibaba stock has managed to rise.That path is open. But the concern has to be that if BABA shares stay stuck, it could signal they're going to be stuck for a very long time. What's Gone Right (and Wrong) for Alibaba StockAlibaba Group has had some headwinds in 2019. The trade war has pressured consumer and business confidence in China, as several companies have noted in recent months. Protests in Hong Kong have only added to the geopolitical risk, and likely led to Alibaba's decision to delay its listing on the Hong Kong exchange. * 7 Deeply Discounted Energy Stocks to Buy Major shareholder Altaba (NASDAQ:AABA) is liquidating its Alibaba stock. According to Alibaba's second quarter release, that company (formerly Yahoo!) sold almost 10% of Alibaba shares outstanding between May 20 and August 9.There are pressures on the business and pressures on the stock. And yet Alibaba has posted strong back-to-back earnings reports. Revenue increased 51% year-over-year in the fiscal fourth quarter (ending March) and another 42% in Q1. Adjusted EPS handily beat Street estimates in both quarters.Meanwhile, BABA stock hasn't exactly soared -- but it's held up. The stock bounced from levels around $150 in late May, amid the Altaba selling, and has neared $180 three times in the past few weeks.Given those external pressures, the case for BABA stock here is that in a tough environment, investors still were happy to buy and/or own shares. So what happens when that environment gets better? After all, Altaba's liquidation is likely over at this point. The trade dispute should be resolved at some point, even if that point isn't necessarily anytime soon. Put another way, it seemingly only can get better for Alibaba Group, and for Alibaba stock, from here. Long-Running Concerns About BABA StockThe catch is that for some investors, it's not going to get better for BABA stock. To bears, Alibaba has significant structural problems. Its VIE structure -- shareholders actually own a piece of a variable interest entity in the Cayman Islands, not Alibaba itself -- makes BABA a no-go for some investors.Accounting issues have long dogged the company. They were raised again in the decision to go forward with the Hong Kong listing. As I noted at the time, it was strange for Alibaba to sell stock at seemingly cheap prices to raise capital when it had plenty of cash already. Indeed, the company is paying $2 billion to acquire Kaola from NetEase (NASDAQ:NTES), a deal it is financing from cash on hand. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off There have been worries about self-dealing, highlighted by Alibaba's move of Alipay to former CEO Jack Ma. And many investors ignore Chinese stocks altogether, worried about a "hard landing" or, worse, an implosion of the economy still run by a nominally Communist single party. Can Alibaba Group Stock Finally Rally?Those skeptics admittedly could be wrong. "Hard landing" predictions, for instance, have been made for at least this entire decade. The VIE structure could change once Chinese regulations do. And, to at least some extent, a 20x forward P/E multiple incorporates those risks.But at least for now, those skeptics and that skepticism seem to matter. They're at least one reason why a proverbial lid has stayed on BABA stock. (Shares at this point haven't moved for two years now.) They're why, to some investors, Alibaba stock seems like a generational opportunity: an e-commerce leader in a country with over a billion citizens trading at a discount to many U.S.-based large caps with minimal growth. Other investors simply see the stock as a trap at almost any price.If the news around Alibaba stock gets better, particularly with the Altaba overhang gone, BABA stock has to rally. Otherwise, BABA starts to look like a stock that looks cheap - and will always look cheap, given the structural risks assigned by the market. As bearish as I've been on BABA, I can see that path to $200+. If Alibaba stock doesn't take that path, however, it might be time to worry.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post If Alibaba Stock is Going to Rally Again, Now is the Time appeared first on InvestorPlace.
Two of China’s leading e-commerce platforms for imported goods are merging into one, and Alibaba Group Holding will further strengthen its leading position in the cross-border marketplace.
Alibaba Group Holding Limited (NYSE: BABA ) has acquired NetEase, Inc. (NASDAQ: NTES )'s import e-commerce platform Kaola for $2 billion. Alibaba plans for Kaola to continue to operate independently under ...
(Bloomberg) -- Alibaba Group Holding Ltd. bought NetEase Inc.’s Kaola e-commerce platform for about $2 billion and invested in its music streaming service, forging a rare partnership between two of China’s largest internet giants.The deal hands Alibaba the biggest Chinese online marketplace for foreign brands after its own Tmall Import and Export. Kaola will now operate independently but under new Chief Executive Officer Alvin Liu, a Tmall veteran. Separately, Alibaba and billionaire co-founder Jack Ma’s Yunfeng Capital will invest $700 million in NetEase Cloud Music. NetEase remains the controlling shareholder of its music app.Alibaba and NetEase -- both based in the prosperous eastern city of Hangzhou -- have long fought social media titan Tencent Holdings Ltd. across several fronts but the landscape is shifting. The emergence of Tencent-backed rivals like Pinduoduo Inc. is testing Alibaba’s dominance of retail. NetEase has long been a distant runner-up to Tencent in gaming and now also music streaming, while Alibaba has its own music app Xiami. The sale of the low-margin Kaola platform now allows NetEase to focus on its bread-and-butter gaming business.“NetEase can further optimize its costs while Alibaba strengthens its leadership in cross-border e-commerce,” Thomas Chong and Ken Chong, analysts at Jefferies, wrote Friday. “On the other hand, we believe NetEase Cloud Music can benefit from potential synergies with the Alibaba ecosystem.”Read more: Tencent Music Dives as Watchdog Probes Its Record-Label TiesThe Kaola deal creates a dominant bazaar for consumers seeking foreign labels and goods. Alibaba and Kaola, which is loss-making on an operational level, controlled almost 60% of all transactions on China-based platforms for foreign brands in the second quarter, according to research firm Analysys.It also deepens a seeming alliance. NetEase founder William Ding and Alibaba CEO Daniel Zhang exchanged good-natured banter during a long TV interview aired in China just last month. Asked about their rivalry, Ding joked: “Many of our employees might be husbands and wives.”What Bloomberg Intelligence saysAlibaba’s $2 billion acquisition of Kaola, NetEase’s cross-border e-commerce platform, will make it the go-to channel for Chinese consumers seeking high-quality foreign products.\-- Vey-Sern Ling and Tiffany Tam, analysts-- Click here for the researchThe investment will prove welcome to NetEase, which like Alibaba has grappled with rising content costs.NetEase Music most recently raised $600 million in November when Baidu Inc., General Atlantic and Boyu Capital participated in a fundraising round. The latest capital injection comes after China’s antitrust authority launched a probe into its much larger rival, Tencent Music Entertainment Group, over its licensing practices. Under government pressure, Tencent Music and NetEase Music last year agreed to relicense more than 99% of their music catalogs to each other.“What really matters is the 1% exclusive content,” said Shawn Yang, a Shenzhen-based analyst with Blue Lotus. “Now that NetEase has new funding that can be used to buy copyrights, it will definitely be a threat to TME.”(Updates with analysts’ comments in the fourth paragraph)To contact the reporter on this story: Zheping Huang in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Alibaba has acquired online shopping platform Kaola from NetEase for $2bn, creating China’s largest cross-border ecommerce platform and giving the Chinese tech giant another leg up in its bid to dominate online shopping globally. The acquisition will also see both companies, ostensibly rivals, collaborate further on digital entertainment in a bid to take on Tencent Music Entertainment, with Alibaba buying a $700m minority stake in NetEase Cloud Music as part of the company’s latest funding round.
The Chinese tech giant nabs a big asset from a compatriot, while the athleisurewear company surprises on the upside.
Alibaba is on a shopping spree. The Chinese ecommerce giant will buy online shopping platform Kaola from NetEase, known mostly as Tencent’s biggest rival. The $2bn deal is a steal for Alibaba and a loss for NetEase.
Alibaba Group has acquired NetEase Kaola for $2 billion, the two companiessaid today, and will integrate it into Tmall, creating the largest cross-border e-commerce platform in China
Alibaba Group has agreed to buy e-commerce business Kaola from Chinese gaming company NetEase for $2 billion, adding a platform that specializes in supplying curated luxury goods from abroad to domestic consumers. Alibaba, which is looking for new revenue drivers as the e-commerce market at home matures, will also invest $700 million for a minority stake in Netease's music streaming arm as it takes on Chinese market leader Tencent Music.
Alibaba Group has agreed to buy e-commerce business Kaola from Chinese gaming company NetEase for $2 billion, adding a platform that specializes in supplying curated luxury goods from abroad to domestic consumers. Alibaba, which is looking for new revenue drivers as the e-commerce market at home matures, will also invest $700 million for a minority stake in Netease's music streaming arm as it takes on Chinese market leader Tencent Music . The long-rumoured Kaola deal and the music investment highlight at once a defensive move to keep niche growth players out of the hands of e-commerce rivals such as Pinduoduo and Alibaba's flexibility in adopting new strategies.
Two of China's most valuable public tech companies announced a deal Thursday evening that will shift one business from NetEase Inc. to Alibaba Group Holding Ltd. and shift a lot of money the other way. Alibaba agreed to acquire an import e-commerce business from NetEase, Kaola, for about $2 billion, and invest $700 million into NetEase's streaming music business, NetEase Cloud Music. Alibaba will continue to operate Kaola as an independent business, with the general manager of its Tmall business taking over as chief executive of the business. NetEase will retain control of its music business, with the investment from Alibaba being part of a round of financing. With the NetEase segment that most closely rivaled Alibaba's core business now in the hands of Alibaba, the two companies said the deal "paves the way for the two internet companies with deep roots in Hangzhou to further identify and explore business collaborations." The deal was announced just following the end of the extended trading period Thursday afternoon; at the end of trading, Alibaba was worth $465.9 billion and NetEase had a market cap of $34.7 billion.
HANGZHOU, China, Sept. 5, 2019 /PRNewswire/ -- NetEase, Inc. ("NetEase") (NTES) and Alibaba Group Holding Limited ("Alibaba") (BABA) today announced Alibaba's acquisition of NetEase's import e-commerce platform Kaola for approximately US$2 billion. The transaction paves the way for the two internet companies with deep roots in Hangzhou to further identify and explore business collaborations.
China's leading search engine and one of the country's original online gaming companies are cheap. Let's see which one is cheaper based on their near-term prospects.
After weeks of media reports, Alibaba may finally be nearing an agreement toacquire NetEase’s cross-border e-commerce unit, Kaola