Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Summary: This shopping extravaganza, invented by Alibaba itself, has now become a frenzy worth more than Black Friday and Cyber Monday combined. But what does this year's success mean for the Alibaba share and what does it say of the health of the Chinese consumer?
Alibaba just delivered another record-breaking online shopping event. The 11/11 “Singles Day” event achieved 213.5bn yuan ($30.7bn) in gross merchandise sales during the 24-hour online shopping extravaganza, outpacing the sales of US shopping holidays Black Friday and Cyber Monday combined.
In less than 16 hours last years 168bn Yuan record was surpassed, but despite record-breaking numbers, the annual sales growth rate has fallen to 27% from 39% in 2017. It is also worth noting that the GMV (gross merchandise value) growth number has historically had little bearing on December quarter financial results as shoppers tend to reserve purchases for Singles Day given the significant discounts and Alibaba’s revenues are more correlated with merchants' adverts and commissions.
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