Is Alibaba Group Holding Ltd (BABA) Stock A Buy For 2017?

The Rush To Claim The Content Crown

Content has been earmarked as another key growth driver for Alibaba, it owns two of the largest streaming platforms, Youku.com and Tudou.com. China is the fastest growing media market in the world (in absolute dollar terms), estimated to expand by around $100 billion within the next 3 years.

So, it’s reasonable for investors to expect the e-commerce giant to announce more partnerships in the near future after it recently struck a three-year licensing partnership with Oriental DreamWorks to bring animated movies to Chinese viewers. (See Also: How Safe Is Your Investment In Alibaba Stock? Alibaba Group Holding Ltd (NYSE:BABA))

Short-Term Pain But Long-Term Gain

Alibaba Group Holding Ltd (NYSE:BABA)’s road to success is riddled with uncertainty not least in the US, as the effect of potential protectionist policies from Donald Trump as well as his seemingly tough stance on China could dislodge one of Alibaba’s key growth markets as the e-commerce giant has a significant part of its business tied to trade in the U.S higher tariffs on Chinese goods.

Consequently, Alibaba’s share price could soften over the near term, as participants may use Alibaba as a proxy short on China until there’s a semblance of policy clarity surrounding Donald Trump’s position on China, however, any softening in the share price could provide an attractive entry level for investors.

Alibaba’s key metrics show robust performance not only limited to its ability to monetise its users effectively, the growth of revenue per actual active buyer (revenue/actual active buyer) is predicted to continue and the e-commerce giant’s efforts to diversify its revenue beyond e-commerce makes it a ‘safe bet’ over the near-to-long-term.

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The article Is Alibaba Group Holding Ltd (BABA) Stock A Buy For 2017? originally appeared on amigobulls.com. Watch our analysis video on BABA

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