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.

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2 Comments

  1. david manners
    July 22, 2014 11:49

    True. It’s truly amazing SilverMan, here’s a bollox-free success story. How can a company be worth $100 billion without changing the paradigm of the post-industrial landscape?

  2. Silverman
    July 22, 2014 11:13

    A company that truly creates value? Is this a new trend starting? Where are all the eye-balls metrics and other techno- marketing claptrap here in this story?

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