Alibaba (BABA:NYQ) is trading nearly all times high after reporting outstanding earnings.
Here are some of the reasons why the price is so high. You have to decide by yourself if its worth to own at that price or better wait for the market correction.
- Retail is rising – and is domestic China market.
- Rapid Revenue Growth – approx. 47%.
- Possibility of using Alibaba platform by more international traders.
- Diversification – cloud services, Alibaba owns Youku Tudou and Chinese Morning Post
- Alibaba may soon overtake Amazon as the biggest online retailer.
- Accordingly to some experts Alibaba still has potential to grow further as its valuation is similar to some start-up stocks with no such a history.
NOTE: This article is not an investment advice.
Some other Alibaba sources: