Alibaba's Looking For Black Swan Opportunities


Competitors

Meanwhile, its Amazon.com, Inc. AMZN managed to pause Microsoft Corporation's MSFT $10 billion Pentagon contract. A judge has issued a temporary injunction preventing the contract from moving forward until a lawsuit from Amazon is resolved. Amazon's case is President Donald Trump's personal animosity toward Amazon CEO Jeff Bezos and The Washington Post, which Bezos owns.

Overall, it finds the contract to have "clear deficiencies, errors and unmistakable bias." Its other competitor is also doing well, as Shopify Inc's SHOP stock has gained 222% over the last year and its price rose after a strong earnings report on Thursday, showing the company's strong determination to hit the international front. Meanwhile, Walmart Inc WMT has a few clouds on its relatively blue skies as it is shutting down its personal shopping service that allowed New Yorkers to text message orders for home delivery.

Jet black will be down on February 21 due to inability to find adoption or additional investment. So, there is no lack of headwinds in the global industry, but these e-commerce giants are still coping well. For now.


New Possibilities

Management hinted that the challenges brought on by the outbreak could prompt long-term behavioral changes from Chinese consumers and businesses alike. More consumers are ordering groceries from their homes and more employees are choosing to work from home, two trends that Alibaba plans to account for in its various service offerings. But globally, there is the inevitable trend that more and more businesses and more and more customers are opting for a digital life and a digital working style.

Black swan and Tchaikovsky aside, Alibaba is trying to balance investment spending with operational improvements in its core-commerce segment.


Outlook

Alibaba's shares have dropped nearly 5% over the past month, but they did before climb 20% if we look at the past three months. And its revenue did rise 38% year-over-year during a strong quarter. In the release, it showed an increased user engagement and rapid growth in the cloud computing services.

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