Alibaba responds to Barron's story calling for a 50% fall in stock price: "On valuing Alibaba's shares (emphasis Alibaba's):
"Comparing Alibaba's PE multiple to eBay's PE multiple is flawed because eBay does not operate in China. A more relevant comparison would be with our large-cap Chinese Internet peers. The PE multiples of Tencent and Baidu on consensus 2015 earnings are 31x and 24x, respectively."
On the company losing market share:
Our Taobao and Tmall marketplaces combined have an unrivaled leadership position in e-commerce in China. In the Tmall B2C segment, our market share according to iResearch is more than twice the share of the next closest player.
On the amount of money spent by customers on Alibaba's platforms:
The comparison of the average annual online spend of an Alibaba shopper with the average retail spend of Chinese citizens is inappropriate. Shoppers that come to Alibaba's platforms are early adopters of technology and tend to be urban and more affluent. It is flawed to compare Alibaba's number to a number derived from simply dividing the size of the Chinese retail economy by 1.3 billion people including 600 million people in the rural villages."
'via Blog this'
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