To The Moon

Alibaba: got great execution!

$Alibaba(BABA)$ $Alibaba(09988)$  @tigerstar

In my view, Alibaba has done a very impressive job in re-structuring and re-baselining its businesses, the so called “1+6+N” strategy.

Alibaba got execution! And the speed of execution is tremendous!

Here is my take of Jack Ma’s thought of “go back to Taobao, go back to users, and go back to the Internet”: it’s Jack Ma’s “不忘初心” (forget not the original intention), which is, focus on small-micro merchants and enable them to conduct commerce easily as a platform. It’s about mission driven.

There are many business model-/technology-driven platforms. Even Tmall, which is probably what Charlie Munger referred to as “a gawd-damned retailer”. Guess he might count $JD.COM INC(9618.HK) in as well. While I would call TikTok etc technology-driven platforms (which I guess TikTok might not agree).

Some investors were not happy about the recent leadership changes (which was reflected in the decline of its share price), particularly Group Chairman/CEO Daniel Zhang’s move to lead the new “Cloud Intelligence Group” (/Aliyun), as if he is sidelined by old guards Joe Tsai and Eddie Wu who are to become the Group Chairman and CEO respectively.

In my views, all the moves are excellently considered. And Alibaba is blessed with a good number of great executives who can be best positioned to lead the changes.

Joe Tsai and Eddie Wu are steady old hands to steer the mothership and revitalize Alibaba’s e-commerce business, with Taobao at its core, while Daniel Zhang is given high hopes to seize a strategic opportunity and to accelerate Aliyun’s growth in cloud, big data and AI.

So for now, it’s all good. I am with Alibaba.

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https://myinvestingnote.wordpress.com/2023/06/24/alibaba-got-great-execution/