Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Alibaba’s Amazing Arithmetic
In Q4 2013, 15 year-old China e-merchant Alibaba’s buying and selling deals were worth $85 billion which is why the company’s NYSE IPO planned for September is going to value the company at anything from $100 billion to $250 billion.
One day last year Alibaba shipped 156 million packages. It accounts for over 70% of all China’s mobile e-commerce. Mobile represents 20% of Alibaba’s total business.
For the first nine months of Alibaba’s current FY it had revenues of $6.5 billion and profits of $2.85 billion. For it’s last full FY it had revenues of $5.5 billion and a profit of $1.39 billion, so it’s growing nicely.
Recent deals with governments in Brazil, France, Singapore, Australia and Italy are expected to accelerate growth.
It has $7.8 billion cash.
Yahoo has a 24% stake in Alibaba worth upwards of $40 billion.