Yes, Alibaba Group Holding Ltd (NYSE:BABA) had a fantastic Earnings Report, but what lies ahead for the e-commerce giant based in one of the hardest working countries in the world. Aaron Kessler of Morgan Creek Capital, shared some of his thoughts on CNBC, and according to him Netflix might have some problems if it chooses to expand in China.
“We have definitely heard that they [Alibaba Group Holding Ltd (NYSE:BABA)] are looking at increasing investment in the digital content space, which raises the question are they trying to become the Netflix of China. There have been some talks that they are talking to some Studio executives, so I think that is clear, I think definitely on the online side with kind of easy web looking to become a mobile operating system so it definitely can become more of a media company going forward as opposed to just e-commerce,” said Kessler.
Alibaba Group Holding Ltd (NYSE:BABA) has its fingers in all the pies that Jack Ma, the company’s founder and CEO, can think of. From a mobile operating system, and cloud computing to e-commerce and now the content business, the company will one day have it all covered.
Moving on to the Earnings Release today, the talk of the day were the mobile numbers. Alibaba Group Holding Ltd (NYSE:BABA) seems to have an iron grip on the future of e-commerce in China. Mobile is the future and the earnings report showed that the company has a strong footing in that department. Kessler expanded on the relevant numbers.
“[…] Mobile monetization, that is up to about 1.8%, or 1.87% in the quarter, so that was a significant higher than our estimate of 1.4%, and up significantly year over year as well. If you look at mobile GMV that was up about 260% year over year and then mobile revenues were up over a 1000% year over year, so it really is a mobile shift that you are are seeing right now and that showed in the result of 54% year over year growth […],” said Kessler.
Alibaba Group Holding Ltd (NYSE:BABA) is currently trading at $104.9, up about 3% for the day.
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