According to Wallis Partridge, Chinese e-commerce giant has been busily buying or taking stakes in smaller companies in a bid to minimize its weaknesses.
Hong Kong., February 28, 2014 - (PressReleasePoint) - Wallis Partridge have reported that Chinese e-commerce titan, Alibaba, has spent more than $2 billion in the past year either acquiring stakes in or buying outright smaller ecommerce outfits in an effort, it’s believed, to beef up areas in which it could be considered weak when compared to rivals like Tencent and Baidu.
“We think they’re trying to ensure they can achieve the higher end of estimates of market value in the likely event they actually do go ahead and launch an initial public offering later this year,” said a Wallis Partridge analyst.
Revenue growth at the company has slowed owing to increased competition and the fact that Alibaba controls 80% of China’s ecommerce so it has made inroads into areas like map makers, social media sites and web browsers as well as logistics companies.
“It’s clear they need to expand beyond China into the US and other markets around the world but they’re going to need to offer more than they do currently. Mobile is critical to their future particularly given the rate at which smartphones are being adopted in China,” he continued.
The sheer number of mobile internet users surpassed the number of PC users as far back as 2012 but many Chinese companies have yet to fully harness the potential of this development which companies in most advanced countries have already leveraged to great advantage.
Wallis Partridge says it expects Alibaba’s market valuation to exceed the $100 billion mark when the company eventually decides to go public and believes there is a chance the IPO’s size could rival that of Facebook.
About Wallis Partridge:
Wallis Partridge is a wealth management practice that provides performance-related investment management, financial consulting and planning services to high net worth individuals and institutional investors by offering high yielding investment opportunities in a broad array of asset classes to our clients. We deliver prudently selected investment products to grow our clients' wealth in a timely manner.
We have a proven track record in anticipating the markets and investing in innovative companies that have performed well above their peers over the long term and have created efficiencies of scale to accelerate growth potential.
For many years we have been in the vanguard of delivering contemporary investment strategies that produce unusually high returns on capital.
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