Yahoo Japan Stock Reached 12-month High On Tie-Up With Alibaba Group Holding Ltd

YAHOO JAPAN shares rose the most in a year, following a tie-up announcement with e-commerce giant, Alibaba.

YAHOO JAPAN stock rose over 11% during regular trading session on Friday. The increase was mainly because of a joint announcement and collaboration with Chinese e commerce giant Alibaba Group Holding Ltd. The increase is the highest ever recorded for the company in around a year, Bloomberg reported. conversely, stock of Alibaba lost ground and stood at $90.95 at market close on Friday.
Yahoo Japan is ranked amid the top 3 e-commerce firms in Japan. It was established as a joint venture between Softbank -a premier internet co. in japan and Yahoo Inc.

Earlier on Friday, Bloomberg mentioned Yahoo Japan emailed statement, in which it confirms the alliance between the firms. The email stated that a collaboration with Alibaba will lead to several synergies, and support number of e-commerce firms from the country in reaching to large number of population in China. The company also said that the partnership was targeted at decreasing the internet companies charges in Japan that are looking to list on online marketplace of Alibaba namely, Tmall.

Tmall.com  was previously spun off from the TaoBao platform of the company, approximately five years ago, and presently serving as a B2C marketplace for Alibaba. Tmall enable international brands and Chinese brands to do business in China with consumers. Moreover, the company also told Bloomberg, that the latest increase in demand of Japanese brands in China seems as a great opportunity to do alliance with Alibaba.

Hiroko Sato an analysts at jefferies was quoted by Bloomberg as supporting the collaboration between Alibaba and Yahoo Japan. He mentioned in a research report that an alliance with Alibaba would open open gates for the company to a $404 billion with of market, which is roughly 5 times bigger as compared to Japan market.

Significantly, new Chief Executive Office of Alibaba, Daniel Zhang talks about the significance of globalizing the marketplace of company. in his very first speech to its workers and staff as new CEO, he said, “We will organize a global team and adopt global thinking to manage the business, and achieve the goal of ‘global buy and global sell."

Majority of analyst are bullish on baba stock. Almost 51 covered the stock , 44 gave Buy rating, 5 assigned a Hold, and only 2 rated the stock as sell. The twelve month price target stands at $109.41,reflecting an upside of more than 20% compared to $90.95 closing price on Thursday.

Chairman Of Alibaba Group Jack Ma Assures Employees About Recent Lawsuits

United States shareholder welcomed the year with positive attitude. After the 2008 housing bust, the economy shuffles towards a full recovery mode. American stocks are considered to be the best source to generate wealth for shareholders. However, it’s not true in the case of Alibaba Group Holding Ltd for a time being.

Alibaba Group has been welcomed by a lot of troubles, with its shares plunging by nearly 15% this year. The e-commerce giant company’s miseries started as Chinese regulator State Administration for industry & Commerce (SAIC) issued a white paper accusing the company for carelessness towards it fake sales. Alibaba’s ordinary revenue growth has worsened the situation for the company.

However, another lawsuit was filed against Alibaba by Robbins Geller Rudman & Dowd LLP Law firm. The Law firm accused that the company obscured significant regulatory inspection and deceived public before its IPO last year.

In the start of this week, Alibaba Group faced another class case filed by Wolf Popper LLP. They claimed that Alibaba Group dishonored Security Exchange Act Sections 10(b) and 20(a), by deceiving investors about the company’s response to tackle the fake goods sales at its marketplace.

Executive Chairman, Jack Ma, however pursues to calm its employees on the subject of lawsuits flung at the firm. Jack Ma said in his annual letter to his employees before Chinese New Year, “As for the lawsuits company faced from some latest events, I ask Alibaba employees to be at comfort. The Group will attribute high importance to the matter, and we will sustain the principles of objectivity, transparency and honesty to tackle the problem.”

According to Reuters, a Chinese antitrust watchdog is planning to investigate the pricing strategies of China’s e-commerce companies like Alibaba and JD.Com Inc. This effort is the part to ensure a “fair” market and will help in increasing online retailer’s scrutiny.

Alibaba shares have declined by 4% following by a white paper issued by SAIC, which was later withdrawn. Alibaba spokesperson said, “We are continuously monitoring the lawsuits. The company has always been crystal clear in its daily business operations and corporate governance, and always tries its best to safeguard the interest of each shareholder. Alibaba will strongly guard itself and its business practices”.

Alibaba Group Holdings(NYSE:BABA)stock is down by 0.05%, with share price of $86.70 during per-market  trading  as of 08:42 AM on Wednesday February 18th, with 30-days average volume of 17.78 million shares. The Chinese multi-national company has a 52-week low of $82.81, and a 52-week high of $120.00, with market cap of $215.75 billion and price to earnings ratio of 48.18.

Alibaba has the potential to dominate the United States market

Alibaba is one of the most fast growing businesses in the world. Recently the company has emerged to be one of the top names in the industry after becoming the giants of e-commerce industry as well as the company has largest B2B business in the world. The company has surpassed as well as broke its own records. Alibaba has had great success over the past years which have bolstered its domestic and international status and position. It is believed that the Chinese giant and powerhouse, Alibaba, will be huge by 2020.

In recent times, BABA Group is looking forward and working hard to spread its operations in the US market as well. Hence, the retailers of United States warn of Chinese giant Alibaba's impact in U.S. market. Reuters reported that “Several of the largest U.S. retailers warned that Alibaba Group Holding Inc may "decimate" local companies unless Congress closes tax loopholes for online retailers, singling out the Chinese company before it has even established a major American consumer presence.”

Alibaba presently sells to American consumers through its global retail service AliExpress. But its core Taobao service, often likened to eBay's marketplace, is not yet available to U.S. customers in English.

The company is looking forward to start its services which will solely be targeted to American consumers. It is believed that an entry in the US market might decimate the local companies as the e-commerce giant Alibaba’s business is huge as anything. In the coming times, it is believed Alibaba will become as huge as Wal-Mart and EBay in terms of international market presence.

Alibaba working on its expansion

Alibaba is known as the leading company of China. It is one of the largest e-commerce companies in the world and the largest B2B Company in the world. The company provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals. The founder of the company, Jack Ma, has worked really hard in order to bring the company where it stands today. The company has been showing positive results in the market and is posting strong results to maintain its stability and keep growing as the fastest growing business in the world.

After making a great impact in the market in a short span of time, Alibaba planned to work on its expansion. Hence, Alibaba along with Haier Electronics launched its Internet TVs in China. In the past few years, Alibaba has done its business through computers and mobile phones. Now the company moves on to captivate another technology to capture the market. Alibaba Group is expanding into the living room with new Internet television sets, complete with shopping and entertainment features.

Wall Street Journal says “Alibaba and its partner Haier Electronics  launched new TVs in China Wednesday that provide users with access to the e-commerce company’s Taobao and Tmall online marketplaces as well as movies and video games. The new TVs with Haier represent Alibaba’s renewed push into the Internet TV market.”

In 2013, the company launched a smart TV in collaboration with the Chinese TV manufacturer named Skyworth. However, it did not even make a slightest impact on the market and hence there was no traction gained on that product. It was because its online offerings of entertainment were very limited.

The company officials said “the new Internet TV’s online shopping mall offers selected items sold by a limited number of Taobao and Tmall merchants who have already earned high reputation scores on the websites. Only the merchants whose products and services have met high standards will be allowed on the TV platform.” Hence as the company has said so far, there will be over 200,000 items available for selling.

Alibaba is bigger than EBay

Jack Ma is known as China’s richest man and the founder of the most popular Chinese company, Alibaba. Jack Ma believes that Alibaba is the biggest entertainment company in the world. He said that consumers are now looking for entertainment rather than buying online through that site. Alibaba started its business journey as an e-tailer. In the longer run, Jack Ma believes that because of the largest Chinese population, Alibaba will be a vital business market to invest on. The founder of the company believes that Alibaba has and will surpass companies like EBay, Amazon, and Wal-Mart in the near future.

Apart from the B2B business industry, Jack Ma is currently residing in Southern California and is engaged in learning from Hollywood. His most important mission nowadays is to make the executives of entertainment industry understand that China will be the most important film market in the world because of its massive population's growing middle class.

Jack Ma says, “The key difference between American and Chinese movies, chiefly, that in American movies the protagonist never looks like a hero at the start but turns into one by the end. In Chinese movies, on the other hand, I’ve never seen a hero who didn’t die.” Not only this, but Jack Ma is also interested in bringing American companies to China whether in collaboration or on solely purpose. In WSJ.D Live conference in Laguna Beach, he was asked if he is interested in acquiring or purchasing companies such as EBay. He replied “Would you sell it?... There are so many good things in the world. I want to buy Google, I want to buy Apple, but I can't. Let them be good.”

Jack Ma is a sensible businessman and this trait is the reason of founding and operating which is probably the biggest company in the world, Alibaba.