The Recycler
  • Biuromax Masthead web banner March 2024
  • G&G Web banner May 2024
  • Katun web banner December 2022 NEW

Alibaba to become first $1 trillion company

January 3, 2018

(Copyright: Financial Tribune)

According to MKM Partners, the firm looks to set to become the first $1 trillion (€832.1 billion) Internet company by 2020.

As CNBC reports, an analyst from MKM Partners has revealed that Alibaba could reach this sought-after valuation by 2020, beating Amazon and other “Internet peers.”

“It seems likely to us that we will have multiple $1 trillion valuation companies within the next 1-3 years if the current bull market continues. In this note, we examine the pathways of the six leading contenders: Apple, Google, Amazon, Facebook, Tencent and Alibaba,” analyst Rob Sanderson revealed in a note he wrote to clients, under the title “Pathways to $1 Trillion Valuation and Who Arrives There First.”

“An argument can be made for each company achieving $1 trillion in market cap by 2020, with a case for Apple in 2019. We think it’s most likely 2021 when the barrier is broken by an Internet company, but think BABA may have the best chance for 2020 despite being the smallest of the mega-caps today.”

Alibaba, which has a market share of approximately $440 billion (€366.2 billion), saw its shares skyrocket by 96 percent in 2017.

Sanderson pointed out that online commerce “is growing more than twice the rate in China versus the U.S.” and that Alibaba’s “monetisation rate is one-sixth to one-eighth of Amazon’s.”

“We believe that opportunities for further monetization gains are plentiful, largely within the company’s control and that ad-loads represent a considerable growth driver that is at the discretion of management,” he wrote. “We think that BABA may have the best chance among Internet mega-caps to become the first $1 trillion company.”

Though Sanderson conceded there were “many risks” to Alibaba’s future development, among them its investment prospects and losses from other businesses, he revealed that he believes the firm capable of reaching the coveted $1 trillion cap by 2020, “if it generates earnings-per-share 20 percent above expectations in 2018, grows earnings by 45 percent in 2019 and preserves its 24 times forward price-earnings ratio.”

 

 

 

 

Categories : Around the Industry

Tags : Alibaba analysis Growth Internet

  • Mito Web advert July 2023
  • GM Technology Web Ad March 2024
  • Ink Tank Web ad May 2024
  • Static Control June 2022 Big & Bold Ad
  • TN Core May 2024 Web advert
  • Cartridge Web Banner May 2024
  • Apex Web Banner April 2024
  • Biuromax March 2024 Banner
  • G&G Big & Bold Web banner January 2024
  • IR Italiana Web ad January 2021
  • Zhono Web ad March 2024
  • Denner Feb 2024 Web Ad
  • Altkin Web ad March 2024
  • CET Web ad December 2023
  • ITP Web ad January 2021
  • HYB Web banner Jan 2024
  • PCL May 2024 web banner
  • PCL May 2024 web banner
  • HYB Web banner Jan 2024
  • Altkin Web ad March 2024
  • CET Web ad December 2023
  • Zhono Web ad March 2024
  • ITP Web ad January 2021
  • Denner Feb 2024 Web Ad
  • Denner Feb 2024 Web Ad
  • Altkin Web ad March 2024
  • HYB Web banner Jan 2024
  • PCL May 2024 web banner
  • Zhono Web ad March 2024
  • CET Web ad December 2023
  • ITP Web ad January 2021

The Recycler, Wittas House, Two Rivers, Station Lane, Witney, OX28 4BH, United Kingdom | Tel: +44 (0) 1993 899800 | Fax : +44 (0) 1993 226899
©2006-2023 The Recycler - Terms & Conditions - Privacy Policy including cookie use

Web design Dorset | Websites by Mark

The Recycler Subscribe Web ad January 2021
The Recycler Subscribe Web ad January 2021