Scalper1 News
China e-commerce titan Alibaba Group ( BABA ) announced Tuesday that it’s spending $1 billion for a controlling stake in Singapore-based, privately held e-com company Lazada. Lazada operates retail websites in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, Alibaba said in its news release . It’s Alibaba’s largest acquisition to date. The company aims to diversify its revenue, with the vast majority now coming from China, according to news reports . With this and other investments, Alibaba is establishing a beachhead in emerging e-commerce markets such as India and Indonesia. The markets are growing quickly, but e-commerce still has relatively low penetration rates. Alibaba stock was down a fraction, near 77.50, in afternoon trading on the stock market today . The company has a strong IBD Composite Rating of 96, where 99 is the highest. CR measures key metrics such as earnings and revenue growth. Re/code reported that Lazada executives are expected to remain on the job after the acquisition closes. The deal values Lazada at $1.5 billion, according to a statement from Rocket Internet, a German firm that founded Lazada. The move is likely to intensify Alibaba’s competition with regional rivals such as JD.com ( JD ). Scalper1 News
Scalper1 News