In less than 24 hours, two articles about the Alibaba eCommerce platform gave an additional boost to the already exception progress of their stock price.
JPMorgan released an analysis that details how Alibaba’s financial results will increase as new marketing data services are introduced.
At the same time, shares in Yoox Net-a-Porter soared it was reported that Alibaba had contacted the eCommerce fashion retailer about an investment or even possible buyout.
The report came out very close to the announcement of investment from JD.com into London-based Farfetch.com, the luxury brand marketplace. In that deal, Chinese JD.com’s CEO Richard Liu becomes a member of the board of directors in Farfetch.
Alibaba eCommerce platform is targeting revenue growth of at least 45% for 2017, while in the previous fiscal year it generated a free-cash-flow of $10 billion.
Competition between the major eCommerce platforms Alibaba and JD.com appears to be increasing, perhaps while Amazon is waiting patiently for a more favorable time to enter the market.
Similar to the case of JD.com and Farfetch, Yoox Net-a-Porter will benefit from Alibaba’s order, fulfillment and social infrastructure. At the same time, Alibaba.com has access to a huge amount of data that JPMorgan believes is a very valuable asset and hasn’t yet been taken into account for Alibaba’s valuation. JPMorgan sees Alibaba expanding into that market that is rather valuable as we have already seen with Google and Facebook that combined take most of the digital advertising budget in the USA and probably most of the rest of the World.
At the same time, Google and Facebook are probably looking into creating eCommerce platforms similar to Alibaba as a way to diversify their revenue sources and increase their product and value offerings to their visitors!