Irrespective of whether reliance on stock market is for an income or simply for the sake of indulgence, Alibaba Group Holding Ltd (NYSE:BABA) is one of the performers which is creating waves and hence is a good investment option. A panel on CNBC regarded the stock’s outlook as bright since it has been rising as predicted and hence timing of trade is extremely important. As compared to Yahoo, Alibaba is definitely preferred since it seems to be on a must faster and long lasting growth curve.
One of the reasons which are attributed to Alibaba Group Holding Ltd (NYSE:BABA)’s recent climb in stock value is occurrence of Single’s Day on 11th November, 2014, wherein thousands of people log in and make online purchases. An annual event, it is an online shopping bonanza and such is its craze that in 2013 this online retailer stood to make almost $6 billion only on this day. These staggering figures are twice as more when compared against income earned on Cyber Monday and Black Friday.
As the company continues to impress, the more pertaining concern is whether an investment in it will accrue healthy returns over the long run and most of the analysts have given it a bullish rating. Following is a note provided by analysts in favor of Alibaba Group Holding Ltd (NYSE:BABA) –
“We think there is upside in Alibaba’s shares (implying upside for Yahoo! shareholders) as we expect GMV/user to revert to growth in the medium term and many of the new and emerging businesses such as cloud, wholesale, and international could create material, under-appreciated upside.”
Another feather in Alibaba Group Holding ltd (NYSE:BABA)’s cap is the recent meeting between its founder Jack Ma and the Canadian Premier Stephen Harper and the outcome is likely to be a close business partnership which will be symbiotic in nature. Considering that China already ranks second in Canada’s trading list and is a major source of employment, it is just a matter of time before problems between the two nations are sorted out and agreements signed.
This article is written by Vinita Basu.
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