How Impressive Are Alibaba’s Earnings?

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Aug. 27 (Bloomberg) -- Alibaba’s profit jumped in the first quarter as advertisers boosted spending on the Tmall and Taobao Chinese e-commerce platforms ahead of its initial public offering. Bloomberg Contributing Editor Paul Kedrosky and Bloomberg’s Cory Johnson report on “In The Loop.” (Source: Bloomberg)

From the alibaba report.

Also our bloomberg contributing editor on the phone from san diego.

Hall, let me start with you and your take on these numbers.

They're very impressive numbers.

I guess my difficulty in trying to read too much into this yet is something like 25, 30 deals underneath all of this in terms of acquisitions, something like 16 billion over the last 1.5 to two years.

Going through the filing and looking at it, one of my favorite things to search for is look for one time whether it is want to expenses or one-time games, and it popped up like 30 times.

Untangling exactly how much of this weekend annualized versus how much of this is driven by these recent transactions is really difficult right now.

Is this organic or bought growth?

This is a complicated filing for the fact the reporting not in u.s. dollars in exchange rate -- a report exchange rate on a monthly basis for 2014. there's going to be a lot of untangling to do.

I will also know the user growth slowed down a little bit on a sequential basis and quarterly basis.

But the numbers -- it is china.

The numbers are huge.

There talking about active buyers.

279 million active buyers in the quarter, people actually using the platform to purchase things.

That is up 9% quarter over quarter.

But that is slowing down.

That was 40% growth which get away to 10% growth -- 14% growth which gave way to 10% growth, then 9%. hall, two point, i'm looking at our bloomberg story.

Take out 29 deals worth $16 billion by alibaba.

Everything from finance and soccer to media entertainment and taxi booking services.

People who buy into this ipo, do they know what they are buying into?

Almost no chance of that being the case.

You simply can't, given the byzantine structure in terms of not just the number of acquisitions, but the actual legal structure of the organization with respect to variable interest entities and what have you.

This is an exceedingly conflict's corporate structure made more complex by the recent see of so much of the structure coming together through acquisitions.

I'm still going through some of the filing.

I actually think raised if you exclude some of these one-time items, looks like the profit margins compressed a little bit and the most recent quarter.

The fact is difficult that is to untangle, it is remarkable.

I know corey is great at untangling these numbers.

Give me your take.

Azure going through it, what else will you be looking for in these alibaba results?

The way i'm built my model, i am doing it in r&b and then translating to u.s. dollars, which is not accurate because the currency fluctuate so much.

As paul points out, as they add these businesses, it is hard to see what the core business is doing.

It is different than the vie structure, the chinese law supposedly requires, but fundamentally, when you look at what happens when companies go back, it is hard for shareholders to make ranges at a corporate board level when the companies in the u.s. and the shareholders get one vote for each share.

That is that the case and ali baba where shareholders want even have that much control.

I will put quotes on "control." they can pray.

Faith will help.

We have to leave it there.

Cory johnson and paul kedrosky on alibaba's latest firings -- filings.

Coming up, some new budget

This text has been automatically generated. It may not be 100% accurate.

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