Alibaba Group Holding Ltd. (BABA), in its first earnings report as a publicly traded company, delivered on the growth prospects that have fueled a huge percent stock surge since its September initial public offering. This Tuesday, shares of the Chinese e-commerce stock are up 6% to $104.94, capping a 54% gain from the initial offering price of $68 a share. Given the company sold 320.1 million shares, that means IPO investors who bought those shares are now $11.8 billion richer.
Alibaba has proved itself as a company of superlatives, but what’s the secret behind its success? With a population of 1.357 billion, 632 million are Internet users, China indisputably has a internet-based market with enormous demands. Acting as a online platform for small businesses to cater to millions of consumers initially in China, and now worldwide, Alibaba strategically positions itself to meet both supplier and consumer demands.
Myself as a frequent online shopper, is frankly frustrated by scattered individual shopping sites and miscellaneous add-on taxes. Having a well-organized distribution network surely makes online shopping a much enjoyable, accessible, and diversified experience. Resources are optimized and everyone is happy.
But Alibaba is not satisfied yet. Its expansion into new businesses and markets is telling the world one thing: The lion is awakening.
I really like your metaphor of “awakening lion.”