Alibaba Group Holding Ltd (NYSE:BABA) Could Acquire These 7 Companies In 2017

- January 16, 2017

Alibaba_acquisitionsAlibaba Group Holding Ltd (NYSE:BABA) has been one of the most acquisitive, active investment companies in all of big business. BABA has built an investment portfolio that is second to none, with its hand in just about everything, everywhere.

Given how active CEO Jack Ma has been in discussions with President-elect Donald Trump, and with his pledge to create one million U.S. jobs, there is little doubt the entrepreneur has big plans in the U.S. But first, Ma needs to create brand power in the U.S., and establish itself as the Chinese connection for merchants to penetrate China.

To do so, Jack Ma and Alibaba Group Holding will need to acquire, and judging by his constant contact with Trump, my guess is that Ma has something big planned and wants friends in high places. And with over $16 billion in cash & equivalents and $10 billion in annual free cash flow — along with a very strong balance sheet with a debt-to-asset ratio around 20% — Alibaba has the freedom to acquire just about anything it wants.

Therefore, let’s look at seven potential Alibaba acquisitions, and why each is important to Jack Ma and BABA stock.

Alibaba to acquire SHOP?

Alibaba wants to create a network of U.S. merchants to sell their goods on Alibaba. That’s why Shopify Inc (NYSE:SHOP) is the perfect fit. Shopify lets merchants and customers use its cloud-based platform to create Web, mobile, and various other commerce platforms.


Its recent partnership with was considered a huge deal for SHOP because it gives all the small and medium sized businesses that are part of that network better access to Alibaba would be an even bigger opportunity given it generates far more gross merchandise volume than AMZN.

While BABA would have to pay a large premium, it would be worthwhile long-term as Alibaba Group Holding builds its brand with U.S. merchants and consumers.

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  1. […] With that said, we identified a list of seven companies that Alibaba may acquire, any one of which would be good for BABA stock. These range from smaller companies like Shopify to larger ones like, and everything in between (read here). […]

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