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The Zacks Analyst Blog Highlights: Alibaba, Yahoo, Amazon, eBay and Wal-Mart - Press Releases

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For Immediate Release

Chicago, IL - June 12, 2015 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Alibaba ( BABA ), Yahoo ( YHOO ), Amazon ( AMZN ), eBay ( EBAY ) and Wal-Mart ( WMT ).

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Here are highlights from Thursday's Analyst Blog:

Alibaba (BABA) Offers Main Course to U.S. Investors

Alibaba ( BABA ) CEO Jack Ma was in New York recently to convince businessmen, statesmen and all other interested parties that his 16-year-old company wouldn't "invade" America.

Ever since Alibaba's blockbuster IPO nine months ago, there has been a lot of speculation about the company's expansion plans in the country. But other than a rather small effort in the form of 11Main.com (a collection of small business Internet stores), its ecommerce efforts have been limited.

So what seems to be the plan? According to the CEO, he's here to tell you that there are a 100 million Chinese people hankering for U.S. goods that his company could efficiently (and cheaply) deliver. Not just that: this segment of people (the Chinese middle class) is already nearly as big as the entire U.S. population and likely to double within the next seven years. And if you're still doubtful: Chinese consumer spending is expected to increase from $440 billion in 2014 to $1 trillion by 2019.

But wait, what about the competition? Well, didn't you know that Alibaba was the biggest ecommerce platform in China enabling 80% of all online sales in the country? Rather than bragging about Alibaba's strong market position, Ma focused on the retail scene in China.

And that's apparently hugely different from the U.S. There are no big retail store chains in the country and the nouveau riche rather like to use their mobile devices to connect to the Internet and buy stuff, bypassing the in-store experience altogether. So while in the U.S., ecommerce has come as an after-thought or "dessert" in Ma's lingo, in China, it is the "main course".

The whole thing seems too good to be true, but it makes perfect sense and appears to be in line with Alibaba's general growth strategy. For instance, it recently teamed up with Yahoo ( YHOO ) and Softbank-owned Yahoo Japan to bring Japanese goods to Tmall. Initial talks in India were also along the same lines. So what Ma basically wants is a strangle-hold on the Chinese middle class.

This doesn't of course mean that it has no international aspirations. In fact, Ma is targeting $1 trillion in gross merchandise volume globally by the end of the decade, of which 40% will come from overseas customers. To make this a reality, he intends to get 10 million small businesses on to the platform over a period of 10 years.

Should Amazon ( AMZN ) and eBay ( EBAY ) take notice? You bet. Both companies are focused on international expansion and here is this giant that has suddenly got in the same game. Alibaba expects to do more sales than Wal-Mart ( WMT ) this year and is now working to get U.S. sellers onto Tmall.

Ma said, "we see lots of successful American companies in China but we don't see a lot of successful Chinese companies in the US." Things could change now with this gentle CEO of charming personality at the helm, who went from being a school teacher to a very influential multi-billionaire in just a few years.

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ALIBABA GROUP (BABA): Free Stock Analysis Report

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EBAY INC (EBAY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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