NEW YORK (TheStreet) -- "I regard Alibaba as being Amazon with earnings," said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, on Monday.a Alibaba, the Chinese e-commerce company, is up only 4.5% from its publicly traded opening price of $92.70. However, the stock is higher by 44.3% from its IPO price of $68 per share. Must Read: 17 New Hollywood Movies You Will Want to See Over the Holidays Being long Alibaba and short Amazon is "not a bad trade," Cramer said on CNBC's "Cramer's Mad Dash" segment, adding that Amazon continues to "spend, spend, spend." However, there is a potential negative catalyst for Alibaba in the short term, that being Singles Day.a Singles Day, an event mostly celebrated in China on Nov. 11, is when many young consumers purchase themselves a gift. In 2013, Alibaba had a whopping $5.7 billionain payment volumes on that day alone.a It's the "largest single day of commerce on the planet," co-host David Faber noted.a While Singles Day is great for Alibaba in the long term, over the short term it can have a negative impact on the earnings results leading up to Nov. 11. Many consumers postpone potential purchases ahead of the holiday, therefore creating a "lull" in results, Cramer explained.a Alibaba is likely to outpace its sales from last year, which is one reason why Cramer says he views Alibaba as being undervaluedaand having upside to $120 per share. Must Read: As Apple Watch Launch Nears, Fitbit Unveils New Fitness Trackers to Stay Ahead At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned. -- Written by Bret Kenwell. Follow @BretKenwell
Click to view a price quote on BABA. Click to research the Health Services industry.
from Latest TSC Headlines http://ift.tt/1pQPWnR
No comments:
Post a Comment