2024-01-29 10:26:20 ET
Summary
- Alibaba operates through multiple segments, allowing them to tap into different consumer markets and expand their potential market.
- The China Commerce segment brings in less than half of Alibaba's total revenue but accounts for over 100% of their total EBITA.
- The slow growth in the China commerce segment is a concern, but the exponential growth in Alibaba's other segments presents an opportunity for increased profitability.
Investment Thesis:
Alibaba ( BABA ) is a Chinese based business that operates primarily out of China with segments in the Middle East and Southeast Asia as well. Alibaba operates through six large segments: China Commerce (Taobao and Tmall), International Commerce (Aliexpress, Lazada, Trendyol, Daraz, Miravia, Alibaba.com), Local Services Group ( Ele.me and Amap), Logistics Services (Caniao), Cloud Intelligence Group, Digital Media & Entertainment, and an others category which includes businesses such as Dingtalk which is a digital collaboration workplace and application development platform. Essentially, through their many segments, Alibaba is able to reap the benefits of different consumer segments throughout the world allowing them to expand the potential for their total addressable market....
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For further details see:
Alibaba: Buying Opportunity Despite Geopolitical Risk