12 Questions For Alibaba's First-Ever Analyst Day
China's Alibaba Group Holding Ltd (NYSE: BABA) will host its first-ever analyst day on June 14, and is expected to take questions, among others, over concerns around the health of the Chinese consumer, traction with O2O and monetization of Ant Financial.
It remains to be seen whether management will provide financial guidance for FY17 and/or long-term targets.
Following are Cantor Fitzgerald's 12 questions to Alibaba management at the event.
The 12 Questions
- Analyst Youssef Squali focus on the sustainability of the growth in the active buyers. Alibaba had 423 million active buyers (+21 percent year-over-year) as of 4Q:FY16.
- Squali noted that although TaoBao grew 18 percent year-over-year last quarter, "the growth rate is materially below tmall's 34 percent year-over-year and a sharp slowdown versus about 40 percent at the time of the company's IPO."
- The analyst noted that Alibaba "is entitled to receive up to a 37.5 percent payout of the equity value of Ant Financial immediately prior to an IPO or a 33 percent equity stake in that entity. Ant Financial was valued at about $60 billion in the last round of financing."
- Squali expects cloud Computing is set to become roughly a $1 billion business in FY:17, "growing at a materially faster pace vs. the core."
Cantor Fitzgerald has a Buy rating on Alibaba, with a price target of $95 on the stock. At time of writing, Alibaba was down 0.98 percent at $76.80.
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