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 Diverse Business Model Will Work To Its Advantage – Chris Dewolfe

After a much publicized and successful IPO, Alibaba Group Holding Ltd (NYSE:BABA) stock has resorted to trading at the mid $80 range. Analysts at UBS AG (NYSE:UBS) remain confident that the stock could clock highs of $100 in the coming months after initiating a ‘Buy’ rating. During an interview on CNBC, MySpace Co-Founder, Chris Dewolfe, pointed out that Alibaba’s diverse business model will work to its advantage in terms of profits going forward.

Biggest IPOs in US History

According to analysts at the research firm, Alibaba’s future growth will mostly be fueled by the company’s growing presence in mobile as well as in popular social networks. Alibaba Group Holding Ltd (NYSE:BABA) has already announced that Costco Wholesale Corporation (NASDAQ:COST) will start selling merchandise in its Tmall Global. The platform that allows partners to sell products without having to set up physical stores in China.

“They are getting so involved in so many different businesses and the middle-class population is growing so quickly. It is a very interesting stock to look at and obviously in e-commerce they are getting into web applications, entertainment applications, they are doing partnerships with Costco’s. It is incredibly a diverse company that is very aggressive, “said Mr. Dewolfe.

According to UBS AG (NYSE:UBS), Alibaba will benefit a great deal from its massive active users which currently stand at $188 million with 33% of its transactions taking place on the mobile. An increase in market-share for the giant Chinese company will be the biggest test going forward due to an increase in competition in the online platform especially from

A point of concern at the moment for many investors is the fact that UBS AG (NYSE:UBS) valuation does not factor in any math, but focuses on future synergies that are expected to work to the company’s advantage. CNBC’s Jon Frott argues that investors remain skeptical on Alibaba Group Holding Ltd (NYSE:BABA) closing in on the $100 mark with the ongoing uncertainty in the e-commerce space as well as increased competition.

“You’ve got all this uncertainty not just in their local market about the Chinese economy where it goes from here, but also in the entire macro-environment with high valuation stock and IPO stocks in general, “said Mr. Frott

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

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!