rtmark
LearnBonds.com

Alibaba Group Holding Ltd (BABA) Holiday Under Siege at JD.com (JD)

Alibaba group holding ltd

Alibaba Group Holding Ltd looks set to record a settler ‘Singles Day.’ Started in China in the early 1990s, this obscure holiday was turned into a mega buying event by Jack Ma in 2009, when he decided to sell everything from electronics to clothing at massive discounts.

This year’s Singles Day is shaping up into a two-horse race between Alibaba and JD.com. Both have forged major alliances and put substantial effort into claiming market share ahead of the day.

Alibaba group holding ltd

Alibaba unveiled its Singles Day promotional campaign on October 13, while JD kicked off its own activities about a fortnight later.

“We believe that this year, the investors’ focus will be on the competition between Alibaba and JD,” Alicia Yap, the head of China internet research at Barclays, wrote to clients.

Yap predicts sales to hit record volumes. “We expect Alibaba’s mobile gross merchandise volume to record a new high during this year’s Singles Day.” Last year, Alibaba’s total sales on Singles’ Day soared up to 57B yuan ($9B) within the first 24 hours.

Alibaba, JD.com Rivalry Turns Acrimonious

Last week, Alibaba Group Holding Ltd was accused by JD.com of ‘coercing’ sellers in the run-up to Singles Day. Ahead of the world’s biggest online shopping event on November 11, JD lodged a complaint with the Chinese commerce watchdog.

The Tencent Holdings-backed firm has accused Alibaba of forcing sellers to promote their products on its Tmall outlet. Alibaba has denied the claim.

The retail giant claims its smaller rival is “panicking because they’re losing”.

“They simply can’t match our customer experience and logistical scale. We provide a superior experience for users on our platforms,” Jim Wilkinson, an Alibaba Senior VP, said.

The Chinese body noted the charge and warned sellers “not to use malicious marketing methods to engage in competition,” the Xinhua news agency reported.

Singles Day leaves Jim Chanos cold

The prospect of Alibaba Group Holding Ltd ’s record ‘Singles Day’ sales does not excite Jim Chanos. The founder of hedge fund Kynikos pitched Alibaba as a short. Speaking at a Morgan Stanley Lyford event on Friday, Chanos cited “accounting concerns” as the reason for his bearish stance.

Chanos has been down on China for a long time. He warned in September that the country was running out of ways to borrow. He further added that this would lead to a “credit event.”

“The debt is still growing two to three ‘X’ the economy every year,” he said.

Shares of Alibaba Group Holding Ltd fell on the news. They closed Friday at $83.61, down 2 percent.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar