Alibaba extended its dominance in the e-commerce, especially in Asia, after a series of acquisitions and investments as reported earlier today.
Alibaba announced its acquisition of Lazada recently which weighed on the e-commerce firms in Thailand and made the competition in the local market tighter since more products are expected to arrive online.
Lazada caters six countries in Southeast Asia including Malaysia, the Philippines, Singapore, Indonesia, Vietnam and Thailand.
Although the local-e-commerce is expected to be challenged by fierce competition, the consumers will be the one who will benefit. Market expert believed that consumer electronics, IT accessories, fashion item and other online products will be some of the most affected in this expansion.
Santit Jirawongkraisorn of Lalamove Thailand, shared that existing e-commerce companies in Thailand would face intense competition from Alibaba’s presence, but the increased competition can drive consumer gains and promote the overall e-commerce market.
Relatively, Punnamas Vichitkulwongsa, chief executive of Ascend Group, agreed that a number of business-to-consumer e-commerce companies is likely to fall, however, he emphasized that due to the tight competition the downfall would only last for two to three over the next few years.
Alibaba and Paramount
Alibaba confirmed their investment in Paramount Pictures specifically in two of their upcoming movies, Teenage Mutant Ninja Turtles and Star Trek.
The Chinese e-commerce juggernaut had invested in the movie Mission: Impossible Rogue Nation the previous year.
Other important aspects of the investment such as the financial terms were not yet revealed by the company, although speculations said it would play around $1 billion. This business venture was just one of the effort of the e-commerce firm to excel in different areas such as video streaming and print media.
Moreover, the two movies are set to be shown in China around the second half of 2016, if the plans materialize accordingly.
Alibaba’s Affiliate Goes Public
The Ant Financial Services Group, an affiliate of Alibaba, was reported going public since its value soared to $60 billion, meeting the Chinese listing requirement of three year profitability.
Alipay, one of the most prominent Chinese payment platforms and founded by Jack Ma,is operated and owned by Ant Financial Services. Significantly, a lot of potential retail investors are found to be users of Ant Financial.
Aside from the recent purchasing activities, Alibaba made a bet on an online food delivery. An addition to its widening effort worldwide. Relatively, the firm is looking for private funding of around $3.5 billion.
Shares of Alibaba went up by 0.09 or 0.11 percent to change hands by $79.06 after opening at $78.52. It has an intraday high of $79.12 and an intraday low of $77.71. The Chinese e-commerce has a market capitalization of 197.04 billion and a price earnings ratio of 19.09.
Currently, the stock has an average rating of Buy and an average price target of $93.19. Alibaba has a 52-week high of $95.06 and a 52-week low of $57.20 while its 200-day moving average is $74.98 and its 50-day moving average was $75.68.