CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Alibaba 8217 s Singles 8217 Day sales exceed 5 billion

Article By: ,  Financial Analyst
November 18, 2014 4:27 PM

China's online retail giant Alibaba says it has pulled in 50 billion yuan ($8.1 billion – £5.1 billion) in sales from its annual 'Singles' Day' shopping event. Last year, Alibaba recorded sales of $5.75 billion.

Singles' Day is considered the world's biggest online retail sales day. "I bet the number [of goods bought] is going to be scary," said Alibaba's executive chairman Jack Ma last week, quoted by the BBC.

Alibaba’s operation differs from Amazon or its smaller Chinese rival, JD.com. Rather than holding inventory or delivering goods itself, Alibaba connects merchants, customers, and logistics firms to complete e-commerce sales.

It’s a model that Alibaba believes can handle the exponential growth of a holiday whose sales today are already almost 40 per cent higher than last year’s Singles Day, which itself was 90 per cent bigger than the year before.

"The most important thing is that our business model is scaleable. If we are simply keeping our own inventory, we would not be able to handle this kind of volume," Alibaba vice president Joseph Tsai told Quartz.

The company recently listed on the New York Stock Exchange. Alibaba Group Holding Ltd. surpassed Facebook Inc. by market capitalisation on its first day as a public company right from the minute it started trading and closed with a valuation of more than $231 billion.

"I’d put them (Alibaba) in a class of Facebook and Google with the scale they have, growth prospects and profitability," Scot Wingo, chief executive officer of e-commerce software provider ChannelAdvisor, told Reuters. "There’s a scarcity value there."

Founder Jack Ma has said that the company would spread its business aggressively into the US and Europe following its listing.

In Alibaba’s latest earnings report, sales in the second quarter rose 46 per cent to $2.54 billion, and net income nearly tripled to $1.99 billion from the year prior. Alibaba accounts for 80 per cent of all online retail sales in China.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024