How Chinese Tech Giant Alibaba Lost Its Mojo | WSJ Tech News Briefing
HTML-код
- Опубликовано: 4 авг 2024
- Nearly a decade ago, it seemed like the sky was the limit for Alibaba. Much more than an e-commerce company, Alibaba was a major player in digital payments, entertainment and cloud computing. But in 2020, Alibaba’s business started to turn. A regulatory crackdown, plus changing dynamics among Chinese consumers, meant Alibaba’s grip on the market was starting to slip.
WSJ China tech editor Liza Lin joins host Alex Ossola to talk about what happened to Alibaba, and what it will take to right the ship.
Tech News Briefing
WSJ’s tech podcast featuring breaking news, scoops and tips on tech innovations and policy debates, plus exclusive interviews with movers and shakers in the industry.
For more episodes of WSJ’s Tech News Briefing: link.chtbl.com/WSJTechNewsBri...
#Alibaba #China #WSJ
"Alibaba has lost its way" ... Too funny. Quarterly revenue growth of 9%. $6.2B in FCF. Buying back roughly $1.5-2B in shares per quarter. $62B war chest. 13% Debt/Capital. Effectively serves every consumer in China. I think I'll keep buying shares. Thank you.
Alibaba just lost its way by not focusing on its core business and started to venture into shady loan business with Alipay and micro-chip business. Their platform is old and expensive comparing with PDD without innovation for years.
Exactly. But a combination of Jack Ma overstepping and USA politics keeps this stock way undervalued
Alibaba doesn't want to be a monopoly because China won't allow it. It still the market leader
@@ziaulislam87 exactly, thats why they create so many startups.
"Shanghai based firm Alibaba". It is not based in Shanghai. It is like saying apple is based in Chicago
ZERO staff from WSJ is based in China
Alibaba is in Hangzhou, not Shanghai
There's no doubt that Alibaba did not claim territory in "social commerce", but it's still the undisputed ecommerce leader in China. I think it's obvious that a company growing revenue at nearly 10% is not close to dead. Furthermore, it can't die, because it has a massive $62B net cash position on the balance sheet.
The company trades for 7x cash flow while growing these cash flows at an anticipated 5-10% over the next 10 years. Pretty much in line with Apple's expected growth, except 1/4th the valuation multiple.
This is actually an item of terrible quality. They're only talking about narrative and headlines whereas they don't spend a minute talking about the *SEC-verified numbers* coming out of the company.
If you'd only consider Alibaba's subsidiaries like Lazada, Trendyol or Daraz and their presence in fast-growing economies like Indonesia, Bangladesh, Vietnam or Thailand, you'll probably realise there is much more to this company than just the Ant-Group IPO cancellation and the CCP tech-crackdown.
With massive cash flow, Alibaba can also increase presence at Social media 😅
Why is their free cash flow so much higher than its net income?
Because Net Income includes deductions for non-cash charges. Share-based comp, amortization, goodwill impairment...look at the income statement. Meanwhile, their net cash generated through operations was much higher since we are looking at pure cash in from operations. So, when backing out the non-cash charges and subtracting capital expenditures, FCFF is higher than net income. Net Income really is a BS line item. Cash matters.
Merchants put up money to get on their platforms. The business uses no capital.
Shanghai based? Seriously? From Wall Street Journal?
Stocks, this is the dump and buy later tactics.
Really? Liza Lin couldn't mention what got Jack Ma ACTUALLY into trouble with the CCP?
Shanghai base? is base in hang zhou! First sentence and I knew this video was bad.
I stopped watching at "Shanghai-based tech company Alibaba" 🤣Doesn't even know the basics
Alibaba was chopped into 6 pieces ? I bet big tech isnt as powerful as here...
It was supposed to be after the crackdown but they went back on that. Especially with the economy faltering.
Haha, Alibaba is not based in Shanghai 😂.
just a copycat of AMAZON!