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Like Facebook? Why you'll love Alibaba
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Alibaba, the Chinese online retail juggernaut, just keeps on rolling along a seemingly unstoppable route to greater growth. the firm's Q3 results contain frankly jaw-dropping figures: growth up by 54% for example and the number of monthly active users now at 217 million. We're also less than a week away from 'Singles day' on the 11th of November, which has become China's largest online shopping day; when the public are encouraged to buy a present for their single friends. Last year, on Singles Day, Alibaba saw around 6 billion USD worth of goods sold via their websites in less than 24 hours. This year given China's growth and increasing consumer spend that number could be dwarfed and will certainly eclipse similar shopping sales days, like Cyber Monday, in the West.
Peter Garnry, Head of Equity Strategy at Saxo Bank, takes us through the latest results and looks ahead to Singles Day, when the share price could see another rise off the back of tremendous sales, but Peter also warns that the valuation is becoming stretched and is likely to stall at this current acceleration.