Playlist: BABA:xnys

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#SinglesDay - What does this tell us about the Chinese economy?
Alex Forrest Whiting
11 November 2015 at 11:25 GMT
#SinglesDay - Can Alibaba deliver what investors want?
Peter Garnry
10 November 2015 at 8:54 GMT
Alibaba - just how worried should investors be?
Peter Garnry
24 September 2015 at 7:36 GMT
Why investors should still believe in Alibaba
Alex Forrest Whiting
14 August 2015 at 7:24 GMT
Berger: Alibaba "scares the pants off" the bears
Serge Berger
18 May 2015 at 6:48 GMT
Earnings Season: Yahoo! unlikely to deliver Q1 cheer
Peter Garnry
21 April 2015 at 7:07 GMT
Is this Alibaba's Facebook moment?
Peter Garnry
19 February 2015 at 13:27 GMT
Taming the dragon - how to trade Chinese stocks
Pauline Loong
10 February 2015 at 8:12 GMT
Garnry: Don’t dismiss Alibaba
Peter Garnry
30 January 2015 at 8:26 GMT
NASDAQ week: 10 top tech stocks
Alex Forrest Whiting
24 November 2014 at 14:35 GMT
Like Facebook? Why you'll love Alibaba
Peter Garnry
05 November 2014 at 13:38 GMT
What you need to know about Alibaba's results
Alex Forrest Whiting
04 November 2014 at 8:29 GMT
Yahoo, Apple, Google – the battle of the Tech giants
Alex Forrest Whiting
22 October 2014 at 13:53 GMT
Video / 11 November 2014 at 12:06 GMT

Record sales on Single's Day but have you missed the Alibaba bonanza?

Peter Garnry
Alibaba is holding a well attended press day at its Hangzhou HQ. A huge screen tracks the amount of merchandise being bought and sold on its websites on Single's Day 2014, held annually on 11/11 as an anti-valentine's day. Already the 6 Billion USD record set last year has been smashed. Peter Garnry, Head of Equity Strategy cuts through the hype and analyses what's likely to happen to Alibaba's stock after the Singles's Day excitement has died down. Peter warns that, in valuation terms, the stock price, now around 120 UD, appears over-stretched. 

For example, Peter points out that Alibaba trades 27 times Enterprise Valuation/EBITDA on a two year forward basis compared with 15.3 times for Facebook, an 80% difference.
However, there's little doubt that online retail is booming in China as the country switches from an export driven economy to a consumer driven model. Neil Flynn, Head Equity Analyst at Chinese Investors says "In 2013, Alibaba had sales of 35 billion yuan (about 5.6 Billion USD) on Singles Day, which was 83% higher than the previous year, and the 2012 sales figure of 19.1 bn yuan was passed by 1pm. Alibaba founder Jack Ma says he wants the firm to achieve 100 billion yuan (around 16 Billion USD) in sales in the coming years in a natural way, as opposed to deliberately targeting the figure."

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