If you missed out on the 196% gain on Bluebird Bio (BLUE), the 81% gain on Tencent Holdings (TCEHY) or the 28% gain on Apple Inc. (AAPL) over the last 12 months don’t despair, today we sit before another exciting opportunity at huge gains.
Despite it’s sometimes volatile markets, China is on the move, and a great place to park your money for the next four years to capture gains like those above. Last week, after the American media and financial pundits drove down the share price of some Chinese companies with their talk of tariffs and trade wars, Alibaba Group (BABA) released their earnings -proving what we’ve known for a while now: this is a great time to have exposure to the Chinese markets.
Think of Alibaba as China’s version of Amazon, but with even better upside potential and faster growth who already controls over 50% of the Chinese online retail market. Alibaba reported 62% yearly growth to $8.2 billion and cloud revenues up 103%. Their digital media / entertainment revenues were up 34% year over year to $840 million. Their active consumers were up 37 million to hit 552 million, and their monthly active users hit 617 million. Yes, they have almost more than twice the number of active users as the entire population of the United States. And growing.
One of it’s many platforms, Taobao.com, added 27 million new active users last year. Think of Taobao.com like eBay except with storefronts owned by everyday users.
Alibaba also said it will also take a 33% stake in Ant Financial –a leading provider in China’s mobile-payment market and has broadened it’s services to wealth management, consumer lending, and has expanded to overseas markets. Ant nearly doubled their revenue in 2017 and is eyeing an initial public offering (IPO) possibly this year, which made this a smart investment play for Alibaba.
Many are estimating Alibaba’s share price to hit north of $250, which is a 30% gain in the coming year based on today’s share price of $188.89. Alibaba is up over 10% already in the last 30 days.
Get in now and lock in a 25-30% trailing stop. Add to your position during any pullbacks.