Saturday 22 February 2020

Alibaba Stock Price Declines in February, partly because of COVID-19

Alibaba Group Holding Limited, is a mesmerizing Chinese multinational conglomerate holding company. Alibaba (阿里巴巴) specializes in e-commerce, retail, Internet, and technology. Alibaba wants to build the future infrastructure of commerce.

The massive Chinese e-commerce giant Alibaba Group Holding (NYSE:BABA) stock has been growing well over the last 6 months. However, the stock declined this month. One of the major reasons for this decline is the coronavirus (COVID-19) that is hurting China's economy. Unfortunately, there is a chance that the deadly virus can become a greater global epidemic or pandemic. More than 2,400 deaths happened from this virus. This virus event is certainly greatly disrupting the global economy.

However, Alibaba continues to have many sales. The company reported Q3 sales of $23.2 billion (that equals to a growth of 38%). Earnings per share were reported of $2.61. Those figures are better than the expectations of many analysts.

The company's stock is not looking very good this month. This is because of the virus happening. The unfortunate epidemic has certainly hurt China's economy. China's retail and service sectors are hurt. Production has slowed in the economy because of the delayed opening of offices, factories and schools.

There is certainly a decrease in travel bookings and restaurant orders. This will hurt Alitrip and its delivery business. The number of new virus cases is decreasing everyday. Hopefully, the virus will disappear soon. Then, Alibaba can have its large growth potential.

Alibaba started trading publicly in USA in 2014. It launched with a $231 billion market cap (largest IPO in the world at that time). 6 years later, Alibaba has a market cap of nearly $600 billion.

Last November, Alibaba began trading  on the Hong Kong stock exchange for the first time, grossing $13 billion from that IPO. The company plans to use revenue from the Hong Kong listing to create even more growth of itself.

The fascinating Alibaba stock split involved shareholders that voted overwhelmingly in favor of a stock split. The hypnotizing e-commerce giant said that this split could help with further fundraising activities. That stock split, which must come into effect before July 15, 2020, will see 1 ordinary share split into 8.

Manchester United and Alibaba Group announced a new partnership in December. Manchester United (NYSE: MANU) on Dec.6, 2019 announced a new partnership with Alibaba Group (NYSE: BABA and HKEX: 9988).

This captivating deal will bring exclusive rights to club content in China to Alibaba’s system for the first time. This further extends the club’s engagement with its massive Chinese fanbase.

Manchester United content will be presented and localised on multiple Alibaba platforms. This gives fans access to in-depth club content. The new Manchester United Youku channel is interesting.

Manchester United is one of the most popular and successful sports teams in the world. They have a global community of more than a billion fans. Significant revenue is generated from sponsorship, merchandising and so on.

Alibaba Group (NYSE:BABA) is one of the market’s biggest names. The split over Alibaba stock made a lot of sense. Alibaba vs Amazon comparison is simple. Both companies have achieved great growth.

BABA stock has risks. The Chinese economy has been growing at an impressive rate, but anything can happen in the future. U.S.-listed BABA stock reached a 17-month high last week. The company’s IPO in Hong Kong finally happened, with Asian investors getting shares quickly.

There are differences to trading Alibaba Stock in the U.S. and Alibaba Stock on Hong Kong. Alibaba doesn’t actually guarantee ownership of Alibaba Group itself. That is not for USA companies, in which case a share of stock provides direct ownership.

U.S. owners of BABA stock don’t have any ownership in the actual company. Instead, they own a variable interest entity (VIE).

The Hong Kong listing is different. About $13 billion in shares are sold on the Hong Kong Stock Exchange and they provide direct ownership.

The company websites are quite interesting. There are some differences between and Most of the members on are manufacturers, trading companies or resellers who trade in large order quantities. AliExpress is a global retail marketplace offering quality products at factory prices in small quantity.

Alibaba Cloud is also known as Aliyun. It is a Chinese cloud computing company and a subsidiary of Alibaba Group. Alibaba Cloud provides cloud computing services to online businesses and Alibaba's own e-commerce ecosystem. Alibaba Cloud's international operations are registered and headquartered in Singapore.

Alibaba ads are interesting. Keyword advertising is an internet marketing approach in which provides promotional resources like advertising placement to display product information free of charge, attract potential buyers for such products with a lot of impressions. It then charges using a pay-per-click system.

Alibaba Group is a massive Chinese multinational conglomerate company. The company specializes in e-commerce, retail, Internet, and technology. The stock is: BABA (NYSE). The CEO is Daniel Zhang (From May 10, 2015).

Alibaba Revenue: 376.8 billion CNY (US$56.152 billion, 2019).

The company website is

Here are some of Alibaba Subsidiaries:

Alibaba Cloud
Alibaba Pictures
Jade E Services
Ali Trip
SB Cloud
Data Artisans GmbH
Hema Xiansheng, Inc.
Youku Tudou
Ali Telecom
The OpenSky Project, Inc.
Taobao China Holding
Alibaba Investment
Alipay Singapore E-Commerce Private Limited
Zhejiang Taobao Network Co., Ltd.
Des Voeux Investment Company Limited
Ali Panini Investment Limited
Daraz Singapore Private Limited
KanBox Inc.
Alibaba Group (U.S) Inc.
Koubei Holding Limited
Alibaba Group Services Limited
Alibaba Group Treasury Limited
Alibaba Singapore E-Commerce Private Limited
Alibaba (china) Co., Ltd.
Youku Information Technology (Beijing) Co., Ltd

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