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Is Alibaba a good investment?

Is Alibaba a Good Investment?

is Alibaba a good investment

Is Alibaba a good investment


Alibaba.com! What is it, and is Alibaba a good investment? GettingMoneySmart.com set out to find the answers.

It started like a soft breeze from the East. It gathered momentum and buzz until it became the BIGGEST “IT” THING SINCE FACEBOOK!

Alibaba is China’s largest online company for the transacting of commerce. It is primarily a domestic entity, which sounds self-limiting, but if we consider the scope of China’s emerging discovery of internet capability, we can see the potential that exists. China leads the world in folks. Those folks, all by themselves, have the power to change the way the world conducts business. Should the Chinese marketplace come fully open (not likely to happen soon)the Chinese version of Amazon and eBay would dwarf those two companies combined. The Chinese version of these internet giants? You guessed it…Alibaba, so … is Alibaba a good investment, possibly so!

Alibaba owns a little bit of a lot of different things in a lot of different industries. Its namesake site, Alibaba.com, specializes in import/export services around the globe. But Alibaba also owns TMall, which focuses on China’s emerging middle class. Taobao, which has become China’s single largest shopping site (Amazon to you and me) has also come under the Alibaba umbrella of holdings.

Curiously, Alibaba has branched into a few interesting directions, some of which leave potential investors scratching their collective heads. Alibaba recently purchased a football team (half of a football team to be completely accurate), as well as a film production studio.

Chinese titan Jack Ma founded Alibaba in 1999. He has since left the official company leadership but is believed to continue to be an influence behind the scenes. He has the flamboyance of Virgin Atlantic President Richard Branson, an attractive feature for those with venture capital to spend.

How flamboyant is Ma? The BBC reported it this way:

is Alibaba a good investment

is Alibaba a good investment

“Not every company boss would dress himself in leather, don a Mohican wig, lipstick and a nose ring and sing Elton John’s Can You Feel the Love Tonight to his 16,000 employees. That was exactly what Alibaba’s founder, Jack Ma, did to celebrate the company’s 10th anniversary.”

Alibaba’s initial offering at just over $68.00 a share was snapped up, and the price rose 30% in the very first days of open trading. It has since settled between $86-88, where it has rested since October 1st. While Alibaba hasn’t suffered the buyer’s remorse effect that plagued Facebook, the initial excitement has quelled a bit.

But, Jack Ma’s baby made $6.73 billion in 2013 and looks to clear that mark in 2014. Investors will be patient when they see numbers like that. While they won’t stand idly by forever, the people who make money move around are fascinated by Alibaba and what it may mean for entrée into the Far East.

GettingMOneySmart.com is intrigued as well. We will be watching what happens with Alibaba in the coming days to see what happens.

 

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