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Renee55 Private ID: 70179345
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    New trend in low margin businesses
    Alibaba is currently undergoing a process that is opposite to Amazon (AMZN). Amazon started with a low-margin retail business and added the profitable AWS and advertising business which now form the core of its valuation. On the other hand, Alibaba started with a highly profitable e-commerce business and is now adding lower-margin businesses like physical retail, delivery, digital media, and others. This has led to a significant fall in overall margins for Alibaba as the new businesses cannot match the margins of the core e-commerce business.
    We can see from the above image that there was a whopping 82% YoY growth in Others segment. This is the revenue from physical retail stores, which is generally a very low-margin business. It has also had an impact on the employee numbers of the company. The consolidation of Sun Art has increased the headcount of the company to over 250,000 in the last quarter compared to close to 120,000 in the previous quarter.
    The revenue share of Others segment has increased from 20% in the year-ago quarter to 27% in the last quarter. If Alibaba continues to acquire other physical retail chains, we could see the revenue share from Others segment increase further.
    Importance of standalone valuation
    Due to the above trend, it is very important to look at the standalone valuation of different segments. We can see that Alibaba's core Customer Management business reported 14% YoY growth, which is quite good considering the revenue base of this segment. This is the business that contributes most of the profits for Alibaba.
    Alibaba has also reported 29% YoY growth rate in the cloud segment. The annualized revenue from this segment is close to $10 billion, which makes it one of the main players in this industry. The revenue share of cloud business is only 8%, but Alibaba has managed to report profitability within this segment. The operating margin of Amazon's AWS is 30% while Alibaba's cloud business has a margin close to 2%. It is likely that Alibaba will be able to narrow this gap in margins in the next few quarters, which can improve the sentiment for the overall stock.
    Alibaba's Digital media business had modest growth of 15% compared to the year-ago quarter. However, Alibaba was able to improve the margins from negative 19% in the year-ago quarter to negative 5% in the previous quarter. This is a 14 percentage point improvement in a single year, which has helped the company save close to $0.8 billion on an annualized basis. Even though the revenue growth is quite low in this business, Alibaba has reported a healthy 30% growth rate in average daily subscribers for Youku. According to Variety, Youku's membership base is at 90-100 million compared to 112 million for Tencent Video and 119 million for $iQIYI(IQ.US)$ . Rapid membership growth in Youku could help Alibaba replicate Amazon Prime's success and also build better loyalty for its retail platform to defend against competition from $JD.com(JD.US)$ and $PDD Holdings(PDD.US)$.
    Alibaba Shows A New Trajectory
    Alibaba Shows A New Trajectory
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    $Chase Corp.(CCF.US)$$Affirm Holdings(AFRM.US)$
    In this week's earnings call, Chase CEO was asked about BNPL companies and he said this:
    You saw a firm come out and it's no longer just about BNPL. They're going to have a debit card and attached banking accounts. So these are all different forms of competition which we have to respond to. And so that's why when we talked about, like, expenses, we will spend whatever we have to spend to compete with all these folks in our space.
    Do you see this as a pro or con for $AFRM? On the con side, Chase just declared that they will spend whatever they need to compete.
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    $Paysafe(PSFE.US)$
    (MT Newswires) -- Paysafe (PSFE) and Glory Ltd said Monday they have entered into a partnership to provide payment technology solutions.The companies said the collaboration will combine Paysafe's paysafecard digital technology with Glory's cash processing solution to enable consumers to convert cash to electronic value.Paysafe shares rose 2.4% in recent premarket activity.
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    $Fastly(FSLY.US)$ If you don't wait in a hurry, I won't believe it and you'll go bankrupt
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    $BB — STOCK & OPTION PLAY
    key indicator for MORE uptrend $11.75
    confirmation uptrend - $11.92
    mini breakout - $12.63
    full breakout - $13.31
    stop loss & support - $11.05.  $BlackBerry(BB.US)$
    Picture
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    $Boxlight(BOXL.US)$ couldn't pass up on sharing with you all... CEO bought when we did  ClapCool GuyWorshipPeace
    "Boxlight Corporation (BOXL) (CEO) Pope Michael Ross bought on Dec 09 a total 287,942 shares at $1.65 on average. The purchase cost an estimated $66,000."
    I found this insider buy today...
    Renee55 reacted to
    $Yatsen(YSG.US)$ My New Money Maker 💰💰💰
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    $Microvision(MVIS.US)$
    HoloLens 1: $Himax Technologies(HIMX.US)$
    HoloLens 2: MicroVision
    HoloLens 3: ? ? ?
    Microsoft can choose a different company for HoloLens 3. Without HoloLens, MVIS is nothing.
    Himax was in HoloLens 1
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