Alibaba Group Holding Ltd (BABA)’s Art of Commerce

Alibaba Group Holding Ltd (NYSE:BABA)’s Alipay might be worth around $25 billion and holds around 51% of China’s online payment market. The former company is entitled to about 37.5% of the value the latter can attain at its potential Initial Public Offering, according to Bloomberg’s Mia Saini. 1

So, not only Alibaba Group Holding Ltd (NYSE:BABA) is a freshly discovered treasure, it also has a map for the next ones that might present interest. Since the company gets most of its revenues, thus income, from fees attached to transactions and payments deriving from advertisements analyzing each side of the business might present some insights. Let’s start with Alipay.

“There is a lot of upside potential for Alibaba to the extent that Alipay goes actually goes public and that’s an interesting dynamic that, I think, not many people understand,” said Mia Saini.

If the company will manage to attain more influence over its spin-off to maybe integrate it anew after a while, stock prices will enjoy a pleasant boost for  Alibaba Group Holding Ltd (NYSE:BABA). Switching to marketing and ads, the Chinese commerce titan developed interest in companies like Youku Tudou Inc (ADR) (NYSE:YOKU) and Weibo Corp (ADR) (NASDAQ:WB), which might help Alibaba Group Holding Ltd (NYSE:BABA) reach better the final consumers.

“If you take a look at where’s the most upside potential, probably Youku Tudou mainly because the whole concept of social commerce so the idea that you can have a video platform where you can put more advertising in the form of actual ads not just spinner ads, that’s more lucrative to the company,” mentioned Mia Saini.

Friday is a big day for Alibaba Group Holding Ltd (NYSE:BABA), but as we have seen so far and taking into consideration the facts above, the company is in no rush to collect its money. Especially because it tries to find a way to get Yahoo! Inc. (NASDAQ:YHOO) off its back as neatly and fast as possible.

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.