Tag Archives: Alibaba

Latest news about Alibaba, historical stock charts, analyst ratings, financials, and today’s Alibaba Group Holding Ltd

INTERNET: Alibaba Finds New Home in Beijing

Bottom line: Alibaba’s establishment of a dual headquarters in Beijing for its Tmall unit looks like a smart move to improve relations with government regulators, and should help to avoid future clashes over issues like piracy.

Alibaba’ss Tmall opens second HQ in Beijing

Embattled e-commerce giant Alibaba (NYSE: BABA) is finally realizing that only the passage of time will the ease the weight of negative sentiment dogging the company, and is moving on to the important business of laying a more solid foundation for its future development. That’s my interpretation based on the company’s latest major move, which has Alibaba’s Tmall online marketplace set to establish a second headquarters in Beijing.

Media have been buzzing with rumors about the move for much of this week, with some saying Tmall might be preparing to relocate its headquarters completely to Beijing from Alibaba’s hometown of Hangzhou. But the reputable China Business Network (CBN) says it has finally gotten to the bottom of the story, and that Alibaba’s intent is to have Tmall co-headquartered in both Beijing and Hangzhou. Read Full Post…

ENTERTAINMENT: Baidu Eyes Sale of Piracy-Plagued Music Unit

Bottom line: Baidu’s reported plan to sell its online music unit looks like a smart way to rid itself of a controversial piracy-plagued business that holds little value for its main strategic focuses going forward.

Baidu set to dump music unit?

In what could be a move that’s long overdue, leading search engine Baidu (Nasdaq: BIDU) is reportedly eyeing a sale of a music division that was once one of its major attractions but in recent years has become more a liability due to frequent accusations of copyright violations. Baidu wasn’t commenting on the reports, but such a move would be consistent with its recent diversification into a range of new areas, none of which include music as part of their core business.

Such a deal, if it’s really in the works, probably wouldn’t be worth too much, perhaps in the $100-$500 million range at the very most. More significantly would be the disposal of a unit that in the past has come under fire for allowing rampant piracy through illegal peer-to-peer (P2P) trading of copyrighted music. Read Full Post…

SMARTPHONES: Thrifty Xiaomi in New Switcharoo Scandal

Bottom line: Xiaomi will lower its profile after a recent spate of negative publicity and intensifying competition, but could still stand a 50-50 chance of becoming a major smartphone brand if it executes well in its globalization strategy.

Xiaomi in new switcharoo scandal

Former smartphone high-flyer Xiaomi is quickly learning that a high profile is a double-edged sword, with word that it’s landed in the middle of a fresh new false advertising scandal. Xiaomi certainly isn’t the only company learning this lesson, as its recent downfall tracks a much louder crash at former e-commerce high-flyer Alibaba (NYSE: BABA).

No one is predicting Xiaomi’s demise just yet, and I’ve often said that co-founder Lei Jun is largely to blame for the recent fall due to the huge expectations he set for his company. But this latest news involving false claims for one of the newest models from Xiaomi’s low-end Redmi smartphone line will certainly bring the company down yet another notch in the eyes of investors and consumers. Read Full Post…

News Digest: September 24, 2015

The following press releases and media reports about Chinese companies were carried on September 24. To view a full article or story, click on the link next to the headline.
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  • Alibaba’s (NYSE: BABA) Tmall to Split Headquarters Between Hangzhou, Beijing (Chinese article)
  • Cisco (Nasdaq: CSCO) in $100 Mln JV with China’s Inspur Group (English article)
  • Apple (Nasdaq: AAPL) Hack Exposes Flaws in Building Apps in China (English article)
  • ReneSola (NYSE: SOL) Announces $20 Mln Share Repurchase Program (PRNewswire)
  • Tencent’s (HKEx: 700) Billionaire Founder Sells $414 Mln in Shares (English article)

INTERNET: Alibaba Poised for 2016 Uptick a Year After Record IPO

Bottom line: Alibaba’s stock is likely to face downward pressure through the end of the year, but could see a modest rally of up to 20 percent in 2016 as speculators pile out and founder Jack Ma enters a period of relative silence.

Jack Ma heading for hibernation after bearish year?

Many are taking advantage of the one-year anniversary of Alibaba’s (NYSE: BABA) record-breaking IPO to reflect on the past 12 months and what the future might hold for the company, especially for its stock that has gone on a roller coaster ride in that period. Many are quite subdued and even bearish on the stock, citing bad investments and a slowing Chinese economy. But I would actually take a contrarian view and say the shares could be poised for a modest rebound next year after China’s stock markets settle from their current turbulence.

My theory is rather simple. Alibaba’s stock became the plaything of speculators in the first year of trading after its $25 billion New York IPO last September became the biggest offering of all time. First it was the bulls who piled in, buying into the hype that Alibaba happily dished out about the explosive growth potential of China’s e-commerce market. More lately the bears have moved in, seizing on slowing growth, questionable investments and a piracy scandal to make some short-selling profits on the overvalued stock. Read Full Post…

TELECOMS: Huawei Beefs Up IT Spending, Tie-Up Ahead?

Bottom line: Huawei’s new push into IT services could do well due to the company’s strong background in telecoms products, and could see it form a major partnership in the area with a big global player.

IT services tie-up ahead for Huawei?

Networking equipment giant Huawei is continuing its diversification, with word that it’s planning a major push into the market for information technology (IT) services that could put it into direct competition with such giants as IBM (NYSE: IBM) and Hewlett-Packard (NYSE: HPQ). But perhaps more intriguing is the possibility that Huawei could form a major partnership with one of the big foreign names, amid a rise in such pairings due to restrictions on foreign firms under China’s new national security law.

Huawei began its life as a maker of networking equipment for big telecoms carriers, but more recently has tried to diversify as the global market for those products slows. It has pushed into networking equipment for enterprises, and more recently has found growing success with smartphones. But IT services has remained a relatively small portion of the business, expected to reach $2 billion in sales this year. That would be just a tiny portion of the 288 billion yuan, or about $45 billion, that Huawei posted in revenue last year. Read Full Post…

INTERNET: Didi Kuaidi a Paper Tiger with US Lyft Deal

Bottom line: Didi Kuaidi’s Lyft investment looks smart but will disappoint those hoping for a more aggressive move into the US, while a new taxi app backed by 2 Beijing fleet operators is unlikely to pose a major challenge to private rivals.

Didi Kuaidi drives into US with Lyft investment

Anyone with big hopes for Chinese hired car services leader Didi Kuaidi following its latest mega fund-raising will be disappointed to hear the company’s highly anticipated move to the US is coming through a minor investment that’s unlikely to yield much results. Many were hoping for bigger things from this aggressive Chinese company, but instead Didi Kuaidi looks set to enter the US through an investment and strategic tie-up with local partner Lyft, a rival of the more high-profile and very aggressive Uber.

My view that many will be disappointed by this move is sincere, but at the same time I would also add that Didi Kuaid’s decision to avoid the US for now looks quite shrewd. History has shown that Chinese start-ups have far better prospects when they make developing markets the first stop on their global expansion road maps, rather than focusing on western markets that are lucrative but also far more competitive. Read Full Post…

News Digest: September 18, 2015

The following press releases and media reports about Chinese companies were carried on September 18. To view a full article or story, click on the link next to the headline.
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  • China Electronics in Talks to Acquire US Chipmaker Atmel (Nasdaq: ATML) (English article)
  • Alibaba’s (NYSE: BABA) Rise and Fall: What Comes After the Historic Wipeout? (English article)
  • Rail Giant CRRC Ramps up Overseas Drive as Unit Signs Las Vegas-LA Deal (English article)
  • Yingli (NYES: YGE) Signs Its Largest Solar Panel Supply Agreement to Date in China (PRNewswire)
  • Baidu (Nasdaq: BIDU) to Sell Off Music Unit Amid Copyright Difficulties – Source (Chinese article)

FINANCE: Alibaba Dances with Cathay, Tencent Bank Chief Resigns

Bottom line: Stiff restrictions on private investment in Chinese financial services will hobble a new insurance tie-up for Ant Financial, and were likely a big factor behind the resignation of the head of Tencent’s young WeBank.

WeBank chief resigns

China’s 2 largest Internet companies are in the headlines for major new moves in financial service, reflecting the rapidly evolving picture for this newer part of their business. Alibaba (NYSE: BABA) was in the headlines for more positive developments, as its affiliated Ant Financial unit announced a new insurance tie-up with Cathay Financial (Taipei: 2882), one of Taiwan’s leading financial services companies. The news was less upbeat for Tencent (HKEx: 700), with word that the head of its young WeBank was leaving just 9 months after the bank’s launch.

Both of these stories reflect the huge potential financial services hold for big private companies like Alibaba and Tencent, as Beijing opens the sector to private investment. But at the same time, the newness of the opening means that many rules are unclear and sometimes even contradictory. Tencent has learned that lesson quickly with WeBank, which has faced major limitations in its early days. Read Full Post…

INTERNET: O2O Food Wars Overheat at Meituan, Ele.me

Bottom line: Contention around Meituan’s new mega-funding and Ele.me’s urgent desire to sell itself reflect overheated competition in the O2O restaurant services market, which could result in a major shake-up over the next 12 months.

Meituan denies rumors of funding collapse

Just a couple of days after reports emerged about the latest fund-raising by leading group buying site Meituan, the newest reports are painting a more chaotic scene in the sector for online-to-offline (O2O) services involving collaboration between web sites and restaurants. Meituan is once again in the news, though this time it’s denying rumors that its latest fund-raising has collapsed. Meantime, take-out dining delivery specialist Ele.me is also reportedly in frantic need of cash due to stiff competition gobbling up the industry.

This pair of stories reflects a cycle that’s all too common for emerging industries in China. That cycle typically sees one or two companies find success in a new business area, sparking a gold-rush that sees many others rush into the space. The result is always a surge in overcapacity, which is almost always followed by a shake-out that sees most companies close or withdraw from the business. Read Full Post…

News Digest: September 16, 2015

The following press releases and media reports about Chinese companies were carried on September 16. To view a full article or story, click on the link next to the headline.
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  • Carmakers Curb China Output as Sales Growth Stalls (English article)
  • Tencent (HKEx: 700) to Invest 2 Bln Yuan in Cloud Unit Over Next 12 Months (English article)
  • Meituan Denies Rumors of Failure for Latest Funding Round (Chinese article)
  • Yahoo’s (Nasdaq: YHOO) Alibaba Spinoff Remains Cloudy After IRS Notice (English article)
  • Youku Tudou (NYSE: YOKU) Signs Licensing Deal with Paramount Pictures (PRNewswire)