Alibaba Group Holding Ltd (NYSE:BABA)’s newly-announced chief executive officer, Daniel Zhang, will likely take the Chinese electronic commerce giant farther from the firm’s core business.
That is according to Gil Luria in an interview with CNBC. According to the Wedbush Securities managing director, the new Alibaba Group Holding Ltd (NYSE:BABA) chief executive officer will likely continue strengthening the firm’s hold of its e-commerce business while also looking at other areas to expand to.
“I would expect him to continue the path which has been a very successful one for Alibaba, but he also talked about expanding Alibaba into other businesses. We should look out more for that. We already know that Alibaba has dipped its toe into content, into media, and so look for him to take it to the next level in terms of expanding Alibaba beyond commerce in a way that is helpful to the e-commerce business but maybe a little farther than they have gone before,” Luria tells the CNBC hosts.
According to Luria, Zhang is not really new to Alibaba as he has been with the company for eight years holding various key roles. He is also credited for one of the very big accomplishments at Alibaba Group Holding Ltd (NYSE:BABA) which is creating “Singles Day,” now the number one e-commerce day in the world.
Zhang became the CEO of Alibaba Group Holding Ltd (NYSE:BABA) yesterday. The firm recently reported earnings of $0.48 per share, excluding items, on revenues of $2.81 billion for the just-ended quarter.
According to Luria, there were a lot of concerns from Wall Street before the Chinese giant reported its latest quarterly performance but in the end, the latest quarter proved to be a “very strong” quarter for the company. The firm is growing at a “phenomenal” rate for a company that is as big and as profitable as it is, Luria says, and the last quarter produced no hiccups for the firm.
As for the hiring freeze at the company, Luria points out that the same thing happened in 2012 when the firm decided that there will be zero net additions to employees but the firm grew volume 60% that year.
Rob Citrone’s Discovery Capital Management owned about 9.25 million Alibaba Group Holding Ltd (NYSE:BABA) by the end of 2014.
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