How do you grow when you are already huge? That is the question analysts and investors will be asking as they tune in for Alibaba’s first quarterly earnings report as a public company today.
In September, the Chinese ecommerce company raised a total of $25bn in a record New York initial public offering. Now valued at $243bn, Alibaba is second only to Google in size.
But everyone who bought Alibaba’s shares wants to know how the company can keep growing, given the inevitable declining returns to scale of platforms such as Taobao, the eBay-like consumer-to-consumer website that has been the engine of Alibaba’s growth.
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