We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alibaba's Online Payment Arm Alipay Enters South Africa
Read MoreHide Full Article
China's e-commerce giant Alibaba Group Holding LimitedBABA">(BABA announced that Alipay, the online payment arm of company, will soon be launched in South Africa to help Chinese tourists in the country.
Rita Liu, Head of Alipay EMEA, said that the firm would work with tour bus operator City Sightseeing, facilitated by its partner ACI Worldwide and local company Peach Payments "to enable Chinese tourists to purchase tourists more conveniently from City Sightseeing buses."
Stock Performance Overview
We note that Alibaba has had an impressive run on the bourse in the last one year. The company gained 73.9%, better than the Zacks Electronic - Commerce industry’s addition of 70.7%.
We expect international expansion to back the momentum going forward. Also, this outperformance can largely be attributed to the company’s near monopoly in the Chinese e-commerce market, growing cloud computing services and strengthening efforts to diversify its business beyond it.
Why Africa?
Increasing Chinese tourists in the country and growing focus on digital mode of payments create significant growth opportunity for smartphone-based payment applications like Alipay.
Liu said, “We see big potential in Africa”. She added, “Alipay was actively looking for further areas of expansion across the world "where we see a Chinese footprint." Liu said that 135 million travel internationally every year.
Alibaba appears to be smart enough to foresee that online payment companies could be a major beneficiary of this boom.
Alibaba Continues to Push Outside China
The move appears to be Alibaba’s latest gambit to strengthen its position outside China. The company has been looking at international markets to expand its business. Its current strategy is to generate earnings through investment outside China where it’s up against well-established players like eBay and Amazon, which have been witnessing great success.
On the payment front, Alibaba is already facing tough competition from the likes of Tencent Holdings. Tencent’s WeChat Pay service recently tied up with mobile payment platform Citcon to make its service available to Chinese tourists who are in the U.S.
To fight off the competition and further expand its international footprint, Alibaba in March, pumped in $177 million for almost 36.3% stake in Paytm E-Commerce, India's biggest mobile commerce platform. In April, Alibaba's affiliate Ant Financial, merged with Singapore-based payments platform helloPay and also made a $1.2 billion bid for U.S. firm Moneygram.
Summing Up
As Alibaba focuses on international expansion, its efforts are directed worldwide, including South East Asia, Africa, Europe, Middle East and the U.S.
Given the increasing preference of customers for online shopping nowadays, the use of this online payment service has increased. Therefore, the expansion of Alipay to South Africa will extend its foothold in the mobile payment space.
KLA-Tencor delivered a positive earnings surprise of 11.55%, on average, in the last four quarters.
Applied Materials delivered a positive earnings surprise of 3.35%, on average, in the trailing four quarters.
Advanced Energy Industries, Inc. delivered a positive earnings surprise of 10.46%, on average, in the trailing four quarters.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
Image: Bigstock
Alibaba's Online Payment Arm Alipay Enters South Africa
China's e-commerce giant Alibaba Group Holding Limited BABA">(BABA announced that Alipay, the online payment arm of company, will soon be launched in South Africa to help Chinese tourists in the country.
Rita Liu, Head of Alipay EMEA, said that the firm would work with tour bus operator City Sightseeing, facilitated by its partner ACI Worldwide and local company Peach Payments "to enable Chinese tourists to purchase tourists more conveniently from City Sightseeing buses."
Stock Performance Overview
We note that Alibaba has had an impressive run on the bourse in the last one year. The company gained 73.9%, better than the Zacks Electronic - Commerce industry’s addition of 70.7%.
We expect international expansion to back the momentum going forward. Also, this outperformance can largely be attributed to the company’s near monopoly in the Chinese e-commerce market, growing cloud computing services and strengthening efforts to diversify its business beyond it.
Why Africa?
Increasing Chinese tourists in the country and growing focus on digital mode of payments create significant growth opportunity for smartphone-based payment applications like Alipay.
Liu said, “We see big potential in Africa”. She added, “Alipay was actively looking for further areas of expansion across the world "where we see a Chinese footprint." Liu said that 135 million travel internationally every year.
Alibaba appears to be smart enough to foresee that online payment companies could be a major beneficiary of this boom.
Alibaba Continues to Push Outside China
The move appears to be Alibaba’s latest gambit to strengthen its position outside China. The company has been looking at international markets to expand its business. Its current strategy is to generate earnings through investment outside China where it’s up against well-established players like eBay and Amazon, which have been witnessing great success.
On the payment front, Alibaba is already facing tough competition from the likes of Tencent Holdings. Tencent’s WeChat Pay service recently tied up with mobile payment platform Citcon to make its service available to Chinese tourists who are in the U.S.
To fight off the competition and further expand its international footprint, Alibaba in March, pumped in $177 million for almost 36.3% stake in Paytm E-Commerce, India's biggest mobile commerce platform. In April, Alibaba's affiliate Ant Financial, merged with Singapore-based payments platform helloPay and also made a $1.2 billion bid for U.S. firm Moneygram.
Summing Up
As Alibaba focuses on international expansion, its efforts are directed worldwide, including South East Asia, Africa, Europe, Middle East and the U.S.
Given the increasing preference of customers for online shopping nowadays, the use of this online payment service has increased. Therefore, the expansion of Alipay to South Africa will extend its foothold in the mobile payment space.
Alibaba Group Holding Limited Price and Consensus
Alibaba Group Holding Limited Price and Consensus | Alibaba Group Holding Limited Quote
Zacks Rank & Stocks to Consider
Currently, Alibaba has a Zacks Rank #1 (Strong Buy). Some other stocks worth considering in the broader technology sector include KLA-Tencor (KLAC - Free Report) and Applied Materials (AMAT - Free Report) with a Zacks Rank #1, and Advanced Energy Industries, Inc. (AEIS - Free Report) with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KLA-Tencor delivered a positive earnings surprise of 11.55%, on average, in the last four quarters.
Applied Materials delivered a positive earnings surprise of 3.35%, on average, in the trailing four quarters.
Advanced Energy Industries, Inc. delivered a positive earnings surprise of 10.46%, on average, in the trailing four quarters.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks ""Strong Sells"" absolutely free >>.