Alibaba Remains The Benefactor of the Rise of China's Consumer Economy

Although Alibaba is trading nowhere near the YTD return of Amazon, the latest quarterly results were astounding:

  • 60%+ year over year growth rate
  • 617 million monthly active mobile users
  • 103% year over year cloud computing growth rate (albeit on a much smaller scale)

The strategy of Alibaba is very similar to that of Amazon, using the domestic cash flow and scale to fuel bets in content spend, international growth, cloud investments and the building of the largest domestic logistics network. I remain convinced that Alibaba has rosier days ahead and is certainly the best way to play the Chinese market's maturation into a consumer led economy.