Silver Ridge Resources is forecasting a 30% rise in Alibaba’s revenues and earnings as e-commerce uptake in Asia quickens.
After revealing revenues and earnings that beat Wall Street analysts’ expectations, Chinese e-commerce colossus, Alibaba Group could grow up to 30% in the next 12 months according to Shanghai-based, technology-focused broker-dealer, Silver Ridge Resources. The firm believes that although the company controls more than 80% of the country’s e-commerce market, the fact that internet and e-commerce adoption among Chinese remains below global averages means that even with secular growth in both sectors, Alibaba could realistically be looking at 30% average annual growth in earnings and revenues.
“We don’t think that Ailbaba’s potential has been overstated at all,” said Rhys Quinlan, chief e-commerce analyst at Silver Ridge Resources. “The sheer size of the country’s population and even modest uptake of internet connectivity should be able to support 30% but it’s when you begin factoring in other areas that the company will be able to monetize including mobile, video and Alipay the company’s escrow service for transactions conducted over its numerous e-commerce platforms,” he added.
Silver Ridge Resources, which secured significant tranches of stock for clients when Alibaba began trading publicly on the NYSE dismisses suggestions that the company’s e-commerce platforms are not as sophisticated nor as efficient as those at US rivals Amazon and eBay.
“We freely admit that the feel and look of eBay and Amazon are superior to those offered by Alibaba but in time, the gap between them will be closed. As far as investment is concerned, we’d be more interested in why Amazon still isn’t producing the kind of profits a company with its market capitalization, size and reach should be,” he said.
About Silver Ridge Resources:
Founded in 2005, Silver Ridge Resources is an independent, full-service brokerage, investment planning and management concern committed to delivering innovative capital appreciation and preservation solutions to individuals and families with a high net worth. We place the welfare of our clients and their families first and we pride ourselves on having become the first port of call for their financial affairs. We consistently exceed our clients’ expectations by going the extra mile in terms of attention to detail, delivery of service and, most importantly, returns on investment.
From our headquarters in Shanghai, China and offices around the Asia Pacific region, we currently oversee the deployment of over $4.5 billion of assets on behalf of clients both in Asia and around the world.
Contact Silver Ridge Resources:
681 Haining Rd