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
Facebook Twitter LinkedIn

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

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

About Author

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