Alibaba: How has the Biggest Ever IPO Fared?

As a third-party e-commerce platform operator, Alibaba allows millions of buyers and sellers to connect and transact with each other

R.J. Hottovy, CFA 12 June, 2015 | 11:12AM
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By operating some of the world’s largest online marketplaces, Alibaba (BABA) benefits from a strong network effect in the rapidly growing e-commerce industry in China. The firm has played a prominent role in China’s structural transition to online shopping from brick-and-mortar retail the past decade. Alibaba’s three major marketplaces – Taobao, Tmall, and Juhuasuan – together generated gross merchandise volume, or GMV, of CNY 2.274 trillion in calendar 2014, more than Amazon and eBay combined.

We expect the firm to benefit from several macroeconomic tailwinds

As a third-party e-commerce platform operator, Alibaba allows millions of buyers and sellers to connect, explore, and transact with each other. The company boasted 334 million annual active buyers as of December 30, 2014.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alibaba Group Holding Ltd ADR177.70 USD0.16Rating

About Author

R.J. Hottovy, CFA  is a director of equity analysis with Morningstar.