Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Alibaba Group Holding Ltd (BABA)’s Disruptive Creation of Value Might Have a New Victim: Tencent Holdings

Alibaba Group Holding Ltd (NYSE:BABA)’s been growing at a rate of about 50% per year during the past five years, but this pace becomes more difficult to maintain as the market coverage is close to a maximum level and the company reached an impressive value of over $230 billion. Karine Hirn, founding partner at East Capital, stated her opinion on CNBC regarding the state of e-Commerce in China and the way Alibaba Group Holding Ltd (NYSE:BABA) influences it. 1

Tencent Holdings is another Chinese giant with a solid market capitalization close to $150 billion, which fell in the latest period by almost 4%. It seems that its subsidiaries in the e-commerce industry have suffered from Alibaba Group Holding Ltd (NYSE:BABA)’s influence over the market. However, Tencent Holdings has other opportunities, which aim mostly at social networking and online multiplayer games, and use these as safety vests, that could overturn the situation.

“We will stick with Tencent and we’re also very excited about Alibaba. I mean, we have overweight in our portfolio for IT, this is a very interesting sector,” said Karine Hirn.

Alibaba Group Holding Ltd (NYSE:BABA)’s considered to be at its peak of valuation as the company will not be able to grow consistently in China. Many analysts expect the company to expand its coverage to reach the biggest global markets any time soon. There’s no clear indicator or idea regarding Jack Ma’s strategy, however, the conceptual path to success is clearly defined.

“I think Alibaba has a vision, a vision which is not limited only to Taobao and their Tmall e-commerce. Their vision is about basically disrupting a number of sectors and it could be everything. So that’s what they’ve shown, that’s what they’re doing actually today already in China, for instance within finance,” mentioned Karine hirn.

Alibaba Group Holding Ltd (NYSE:BABA)’s new form of doing business will change the way companies provide services and monetize them, or it will help the company emerge as a monopolistic power in the e-commerce industry. In any case there are pros and cons to any of the possible outcomes, which have to evaluated properly to get even the slightest idea about how the company will do.

Breaking News: Tiger Global revealed a $500+ million stake in Alibaba Group Holding Ltd (NYSE:BABA) in an email sent to its investors.

Disclosure: none
Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!