Alibaba (BABA)

History of the Company:

Alibaba was founded by Jack Ma and 17 others in 1999 and aimed to serve as a full-service web portal to promote and coordinate business-to-business operations between exporters and importers in China and abroad.

Since its founding, the Hangzhou-based company has grown into the world’s leading e-commerce portal with a market value of US$231 billion.

As the world’s biggest e-commerce portal, it offers hundreds of millions of products across more than 40 industries, but its success lies with the decision to expand its business model far beyond e-commerce.

The company offers business-to-consumer and consumer-to-consumer platforms in addition to its original B2B model. Services expanded to include cloud computing, digital media, and online payments. It has also begun to concentrate on mobile growth.

Alibaba and its affiliate companies span the globe and have offices across China, India, Taiwan, the United Kingdom, and the United States. It offers complementary websites, full-language services, and shipping options to over 190 countries.

Trading Alibaba: What You Need to Know

  • Alibaba’s September 18, 2014 initial public offering (IPO) on the NYSE currently holds the record for largest IPO in history. Shares were offered for $66.
  • Demand was so high that on the morning of September 19, Alibaba shares opened at $92.70. Investor demand continued to climb, and the company sold 15% more shares than initially offered, which pushed the IPO amount to an astounding $25 billion.
  • Specializes in e-commerce, claiming 80% of Chinese online shopping traffic.
  • The company’s many businesses cater to China’s 618 million internet users, and more shoppers internationally. This volume makes Alibaba the world’s largest e-commerce company.
  • Its progressive business model has seen company growth triple between 2013 and 2014, with a 46% rise in sales and a net income of nearly $2 billion.
  • Generates the majority of its revenue from advertising and purchase commissions, while letting its merchants list for free.
  • Has a gross merchandise volume of circa $296 billion — larger than eBay and Amazon combined.
  • The expansion of services to include cloud computing, digital media, and online payments has made Alibaba a competitor of tech giant, Google.

Anyone who wants to trade Alibaba should carefully analyze the market conditions before trading.

Trade BABA