Investors at Alibaba Group Holding Ltd (NYSE:BABA) are slowly reaping hefty rewards; seen by Billionaire Alisher Usmanov appearing in an interview on CNBC reiterating that his stakes have soared by 500%. The billionaire has not offloaded any of his stakes in the company and is not in any way looking to do so, anytime soon.
“There is no modest to tell this very big; I think more than 500%,” said Mr. Usmanov
Alibaba Group Holding Ltd (NYSE:BABA) growth prospects continue to remain strong and positive seen by a number of investors remaining hopeful that the company will continue to soar from the current trading margins. Usmanov also pointed out that attention now shifts to emerging markets where future investment opportunities will be pursued.
“I think the bigger attention should be given to the Indian market particularly the internet trade; we are looking now at this. I think emerging markets are still undervalued, “said Mr. Usmanov.
Usmanov declined to diverge the amount of money he made from investing in Alibaba Group Holding Ltd (NYSE:BABA), but reiterated his investments had resulted in an upside of 500%. Alibaba stock is already 38% up from the $68 a share it debuted on, during the much-publicized IPO offering.
Investors like Usmanov with big stakes in Alibaba are poised to earn even more in the future as the company tries to expand its international footprint. Backed by one of the largest customer base in China that reach millions in terms of internet penetration, Alibaba’s growth potential remains strong and sustainable.
Declining active user base at Facebook Inc. (NASDAQ:FB) reportedly forced the billionaire to reduce his stock holdings in the company as attention now shifts to small Chinese companies that are showing great potential for future growth.
Usmanov has also invested in Xiaomi, a Chinese phone company that is giving the likes of Apple Inc. (NASDAQ:AAPL) and Samsung sleepless nights in terms of devices sales. Usmanov argues that Xiaomi is in line to become a future technology giant.
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