Beijing’s New Open Door Bodes Well for Alibaba and Other Online Retailers

Other organizations that could benefit could be Netflix, Etsy (NASDAQ: ETSY), Sears (NYSE: SHLD), Staples (NASDAQ: SPLS), Best Buy (NYSE: BB) and Walmart (NYSE: WMT). All of these retailers could get access to the $404 billion Chinese market through alliances with Alibaba and stores on Tmall. Walmart, which already has a presence in China and a working relationship with Alibaba, could be in a great position here.

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Alibaba Proves It Has Some Value

That gave Alibaba a quarterly year to year revenue growth rate of 38.39%, over twice that of Amazon.com, which reported a revenue growth rate of 15.08% on March 31, 2015. Alibaba’s growth rate also far exceeded that of eBay Inc. (NASDAQ: EBAY), which reported a rate of 4.36% on March 31, 2015, Best Buy NYSE: BBY), which reported a revenue growth rate of 2.82% on January 31, 2015, and Staples (NASDAQ: SPLS), which reported a negative revenue growth rate of -3.69% on Jan. 31, 2015.

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eBay Proves It Has Value

My take on the situation is this. Both eBay and PayPal are value investments; they’re great brands and well-run companies that generate a lot of cash. Both companies also operate in a sector that has a lot of room for growth. Yet they are also undervalued by the market, probably because they operate in an unsexy sector, namely, basic e-commerce.

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PayPal and Prosper Changing Banking Beyond Recognition

This could indicate that traditional banking might no longer be a viable business because of the alternatives available. Things could soon get worse because PayPal is about to get spun off from eBay Inc. (NASDAQ: EBAY) and transformed into an independent financial services company that will compete directly with banks.

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eBay Is Now an Acquisition Target

A very dark horse contender for an eBay acquisition would be Berkshire Hathaway (NYSE: BERK.B). Uncle Warren is famously technology adverse, but eBay does meet some of his criteria: it’s a good company with a strong brand that’s well respected on Main Street but undervalued by the market. It also has a business model that generates a lot of float and cash—two of Buffett’s favorite things.

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How Digital Wallets Will Destroy Banking as We Know It

JPMorgan Chase (NYSE: JPM) reported that one million of its account holders are now using Apple Pay at its Investor Day on Tuesday, February 24, 2015. That means one million customers of one of the nation’s largest banks are using an alternative to traditional banks. Bank consumer behavior is changing faster than we thought.

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