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Alibaba following Amazon's playbook-Wedbush's Lauria

Friday, November 06, 2015 - 03:30

Wedbush Securities' Gil Lauria talks about Alibaba's plans to buy Youku Tudou, ''China's YouTube'' and how the company's strategy emulates that of Amazon. Bobbi Rebell reports.

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Alley Bob is buying Chinese streaming media company no clue what to do is considered by many to be easy it. For a cluster of four million dollars here with more is ill Lari covers the company over at my best securities great to have it there. Thanks rob. I think they aren't alone about 18% it's higher price than the original offer back in. October about a 35% premium over the close back in mid October. Why we're so much to them. Alibaba has a multi stream strategy. They wanted to set them and make sure they can sell best hop on mobile TV. And they want how content and content that was very. They on I'm operating system from mobile phone search engine from mobile. And now they want on our own content delivery yeah computers the Chinese YouTube. They want to make sure they're consumers engaged and now a lot of different ways to solve them merchandise and digital content. And it trying to see the next Amazon. Absolutely they're they've been following Amazon's playbook in several ways the most notable and obvious ones cloud. They realize that just like Allen thought it leverage its huge capacity data centers. So some about capacity often at low prices and still make a very nice margin they're doing the say. In China and elsewhere. And they're definitely paying attention to what works for Amazon and going with it. This is the price that it has yet to do with unprofitable to they really need to feel how to think at a price at some much. Let's 35% for him as you said that the where I was cheering in the art which is a fairly typical premium. They decided it was the it was important for them immigrated to their other properties for about they needed to own it. Fortunate for them that a lot of cash they generate a lot of us and they were able to do it. So had a list get that into Alley about his big picture strategy and other what's gonna be the next step for anything. So that was very ambitious long term vision they want Chinese consumers to not only by on the phone. And on their computers through a traditionally congress channel. They wanna actually content out there that the consumers are buying and and possibly have merchandise within the content think of watching. A TV show where you can buy the merchandise from. That they actors are wearing or that's this way or that it's highlighted. They want to control that entire ecosystem. On mobile on TV. As well as on PC and how every. Particular option that the consumer chooses to buy available for. I think really European and a steel is at the right there and what's your take on their stock. I think other bubbles about priced right at this point does the company that's going to be able to grow revenue of 25%. Probably gone forward. Slower rate or there earnings growth they're trading in the mid to high. Twenties doubts about reflective of what other companies that of those characteristics are trading above is mainly. An investment or trade on the growth of the Chinese consumers believe the Chinese consumer's gonna grow that Chinese economy's good healthy enough about that happen. Alibaba is a very broad. Index on that if you believe the opposite if you believe the Chinese economy is going to head south. Alibaba is probably not a very good us. Parent believe that they're thinking some much skill. Thank I think can kill are at led the securities and body rebel death is writers.

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Alibaba following Amazon's playbook-Wedbush's Lauria

Friday, November 06, 2015 - 03:30