Alibaba is anticipated to gain from double-digit growth in global B2C e-commerce
Alibaba Group Holding Ltd., in spite of witnessing near term headwinds, is all set to gain benefits from cross border commerce. However, China has been surrounded by number of problems related to the economy; experts are of the view that currently it’s the perfect time for e-commerce companies to gain from international expansion.
The analysts at Bidness Etc reassures investors to consider some factors before selling off their investments in Chinese companies.
Recent data from Research and Markets suggests that international business to consumer e-commerce is ready to excerpt double digits growth into the year 2017. Alibaba Group Holding Ltd., China’s e-commerce leader, has a B2C online platform, Tmall.com, placed at the front.
The report called “Global Cross-Border B2C e-Commerce 2015,” has appeared at a time when online companies, including Baba are struggling in the unstable environment. Some of the Chinese stocks, including baba, are surrounded by adverse investor sentiment because of a China’s economy slow down. Economy of China is most likely to grow at its slowest pace since the last 25 years. Country’s stock markets have declined to record lows, instantaneously pulling stock markets across the globe in the red. Because of this, Chinese firms on United States exchanges have lost a major percentage of their current market value.
On the whole, Baba shares have lost the most value, with a slump of around 4%. Following by this is Baidu with 3% cut to its market cap. JD.Com has successfully tackled the issues most effectively, as it only dropped less than 1% during the same period.
Following to the latest declines, Baba stock now trades at $65.50. The company’s 52 week low and high is $58 and $120. However, Research and Markets data highlighted various factors that shareholders should consider before selling off their investments.
The report describes: “Asia-Pacific is predicted to become the largest region in global cross-border online retail, reaching a share of approximately 40% of all cross border sales in the next year. China is an important country for both cross border online imports and exports. Close to a third of active online shoppers in China have made purchases across borders.”
A majority of experts evaluating company’s long term prospects are still bullish on Alibaba’s stock, regardless of recent chaos. 45 out of 52 analysts polled by Bloomberg rated the stock as Buy, 5 assigned a Hold, and only 2 gave it a Sell. The twelve month consensus price target is $96.82, reflecting an upward potential of around 47% compared to $65.5 closing stock price.
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