Late last month the People's Bank of China lowered its one-year prime rate. To this end, Alibaba reported last month that between April and July of this year, the number of daily users of the Taobao shopping app grew at least 6% in every single one of those months.Ĭhina's central bank finally seems ready to put some serious stimulus in place, too. Given that most of the country's internet users are connecting with their smartphones, presumably, they're using mobile apps to drive at least most of this shopping growth. Notably, another 38.8 million Chinese residents became new online shoppers during this period, reaching a headcount of 884 million. The CNNIC adds that online shopping's growth dramatically outpaced that of conventional shopping through the first six months of this year, up 13.1% versus the same six-month time frame from 2022. Unlike most other regions, this growth is still going strong. GlobalData analyst Ravi Sharma explained in a company report, "The Chinese e-commerce market evolved rapidly during the last five years, supported by the rapid adoption of smartphones, growing internet penetration, increasing number of online shoppers, and the availability of alternative payment solutions such as Alipay and WeChat Pay." That's roughly three-fourths of the country.Ĭhina's mobile e-commerce market opportunity, however, remains less than fully tapped.Īs was the case everywhere else, the COVID-19 pandemic jolted smartphone-based shopping into place in China. The number of regular internet users eclipsed the 1 billion mark in the middle of last year, according to data from China's Internet Network Information Center (CNNIC), with nearly 100% of these people accessing the World Wide Web using a mobile phone. Mobile internet has been pretty standard stuff in China for a few years now. The mobile e-commerce explosion plays into Alibaba's hand As such, its adoption rate is still ramping up at a faster clip than economic weakness is slowing things down. This sliver of China's online shopping market is relatively young. Meanwhile, per-share profits are projected to reach $9.15 this year - up from last year's $7.64 - en route to $9.96 per share next fiscal year.Īnd the leading growth driver? Mobile e-commerce. Even then, however, these same analysts are calling for a reacceleration of the company's top-line growth to nearly 10% next fiscal year. Last quarter's revenue was up 14% year over year, led by its consumer-facing e-commerce operations.Īnalysts expect its full-year sales growth to cool to only about 8% for the 12-month stretch ending in March. Whatever headwinds are blowing in China, however, Alibaba seems to be pushing through. Given this backdrop, Alibaba stock's prolonged weakness can't be entirely surprising. With market watchers desperate for any hints of economic strength, the nation's recent uptick in inflation was actually celebrated as a sign of progress. China's all-important exports also declined for a fourth consecutive month in August, explaining the country's recent growth in joblessness and subsequent deterioration in consumer demand. Although last month's retail sales bounced back from July's unimpressive annualized growth pace of 2.5%, unemployment within the country is ticking higher again. Let's also not forget that China's economy - and Alibaba's chief market - is looking increasingly lethargic. As the old adage goes, where there's smoke, there's fire. While we don't know the circumstances behind Zhang's resignation, the abruptness of the move could indicate some sort of internal turmoil. Or you could view this most recent stumble as what it more likely is: a temporary setback, and an opportunity to step into a stake in an underestimated company. Lower lows could be in the offing.Īs a long-term investor, you could join others steering clear of this Chinese tech giant's stocks. Similarly, I want to do the same at the column level as well.The stock's apparent rebound effort that's been underway since October was undermined following the announcement, with share prices sliding back and now sitting about 72% below their late-2020 peak. So, the row totals have to end up to 100% ( i.e. So, if the total count of Funded (since the intial % was for funded) is 100 suppose, 25 of them are Auto ( as purpose), then this 25 is spilt into the four credit levels ( eg: #Subprime - 5, #Prime5 - 10, #Prime6 - 8 and #Superprime: 2, which totals 25). >= MIN(dCalender) & = MIN(dCalender) & <= MAX(dCalender))) := calculate(distinctcount(AppdId),FILTER(distinct(Data),
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