China fines Alibaba record $2.75B for anti-monopoly violations

  • State Administration for Market Regulation (SAMR) said on Saturday that it had determined that Alibaba had been abusing market dominance since 2015 by forbidding its merchants from using other online e-commerce platforms.
  • Chinese regulator's move comes amid an unprecedented regulatory crackdown on the country's home-grown technology conglomerates.
  • While the fine brings Alibaba a step closer to resolving its antitrust woes, Ant still needs to agree to a regulatory-driven revamp that is expected to sharply cut its valuations and rein in some of its freewheeling businesses.
  • Alibaba said in a statement that it accepts the penalty and 'will ensure its compliance with determination". The company will hold a conference call on Monday to discuss the penalty. 'We will tackle it openly and work through it together," CEO Daniel Zhang said in a memo to staff seen by Reuters. 'Let's improve ourselves and start again together as one."
  • Ma's business empire, including fintech Ant Group, has come under scrutiny by Beijing ever since Ma criticized China's regulation system in an Oct. 24 speech. Days later, regulators suspended Ant Group's plans for a record-breaking dual IPO in Hong Kong and Shanghai.

    Over the current book year the total revenue will be 710.13 billion USD (consensus estimates). This is hugely more than 2020's revenue of 509.71 billion USD.

    Historical revenues and results Alibaba plus estimates 2020

    koersdata

    The analysts expect for 2021 a net profit of 179.44 billion USD. For this year the consensus of Alibaba 's result per share is a profit of 65.71 USD. The PE-ratio therefore is 3.68.

    For this year analysts don't expect the company to pay a dividend. The average dividend yield of the internet companies is a limited 1.12 percent.

    Latest estimates around 339 USD

    The most recent recommendations for the internet company are from KBC Securities, Bank of America Merrill Lynch and Susquehanna.

    Based on the current number of outstanding shares Alibaba 's market capitalization 5006.27 billion USD. The Alibaba stock was the past 12 months quite volatile. Since last April the stock is 18 percent higher. This year the stock price moved between 190 and 319 dollar.

    Historical stock prices Alibaba

    fundamental research alibaba

    At 17.31 the stock trades 0.12 percent lower at 241.89 USD.

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