With a market cap of just $331.4 billion, is Alibaba really useless?

2022-05-14 0 By

As everyone knows, Americans invented the Internet and are the biggest beneficiaries of the global Internet industry.In the United States, there are apple, Microsoft, Google, Meta, Amazon and other enterprises. Apple’s market value is $3 trillion, Microsoft’s market value is $2.7 trillion, and the total market value of the top Internet enterprises in the United States exceeds $10 trillion.On the Chinese side are Alibaba, Tencent, Baidu and Bytedance, JD.com.If Bytedance were to go public, its market capitalization would start at a conservative $600 billion. Alibaba is currently valued at $331.4 billion, while Tencent is valued at HK $4.6 trillion.In other words, the gap between domestic Internet companies and American Internet companies in market value is getting bigger and bigger.In the past, 2021 can be said to be a dark year for Chinese concept stocks.More than $2 trillion has been wiped off the value of a bunch of Chinese companies.But the market value of American Internet companies keeps hitting new highs.Then the question comes, the market value gap between Chinese Internet companies and American Internet companies is not too big before, why in just over 2 years, the market value of Chinese stocks has evaporated so much?In Chun’s opinion, there are the following points for reference: First of all, most American Internet companies are global markets. The global users of Meta’s social products are over 2 billion, while Tencent’s wechat is only 1.1 billion, and most of Tencent’s market is domestic.Amazon’s e-commerce plays the global market, while Ali jingdong’s e-commerce base is in China.Amazon’s cloud computing is also a global market, while Ali Cloud is still mainly domestic.Second, American Internet companies focus on technological innovation, while Domestic Internet companies are keen on business model innovation.The two different business styles also create the different valuation of the capital market.In the end, domestic Internet companies are getting too comfortable because China is a big enough market with the largest number of Internet users in the world.Many companies miss out on the global market by focusing on doing well in their home market.At present, Alibaba’s market value in the past few years is sharply declining, the stock price is directly down to 2104 years.Many netizens joked that if holding Alibaba’s stock price for seven years did not move, the seven years not only did not earn a cent, but also wasted seven years of investment time.Chun childe has simply analyzed before, the reason why Alibaba’s stock price is depressed is because ali’s e-commerce base plate has been impacted, and the capital market is considering whether Ali can hold its own basic plate in the e-commerce field.So the problem comes, although the basic dish of Alibaba is electric business, but Ali opened a diversified layout many years ago, Ali in addition to electric business, is it really good for nothing?Alibaba’s value to the world, the country, society and the public continues to exist and improve.There is no doubt about that.In addition to e-commerce, Ali also has Xianyu, Ali Health, Hema, Ant, Damai, Youku, Autonavi, Dingding, Ele. me, Ali Cloud, Ali Film, Flying Pig Travel, hummingbird New, which has gone deep into every aspect of life and shows no signs of being abandoned by the public.So, despite the current challenges to alibaba’s e-commerce infrastructure and the continuing decline in its stock price, we can’t say that Alibaba is worthless.After all, as the old saying goes, “A skinny camel is bigger than a horse,” and Ali isn’t done yet.I don’t know what you think!