Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written, yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Wednesday, 25 January 2017

Alibaba and the fifty-four per cent increase

Open sesame

A folk tale of mystery and intrigue indeed, from Alibaba's quarterly for the December quarter of 2016.

There is a lot of conjecture about whether China's reported economic growth of +6.8 per cent is real or made up. 

It's often argued that the true rate of growth is much lower, but there is also some evidence that stimulus has gotten things moving again in 2016. 

In that context, a quick look through Chinese e-commerce group Alibaba's latest quarterly results for December 2016 is enlightening.

Being traded on the New York Stock Exchange (NYSE : BABA), the numbers should be somewhat less rubbery, if not exactly water-tight.

Summary financials

Year-on-year revenues for the 3-month period were up by a blistering 54 per cent to RMB53.2 billion (US$7.7 billion), with revenue for the "core commerce" or retail segment up by 45 per cent from the prior year to RMB46.6 billion (US$6.7 billion).

Source: Alibaba

The group now reportedly has half a billion mobile monthly active users. 

If SEC filings and summary financials aren't your thing - and who could blame you? - visualise instead a PowerPoint presentation featuring lots of charts like these and you'd have the general picture...

Source: Alibaba

The group reported strong growth in cloud computing operations, mobile revenues, digital media and online marketing services (more clicks!), plus growth within some recently consolidated acquisitions. 

The group reported an astonishing US$4.9 billion in free cash flow in the quarter (on a non-GAAP basis), sending the share price blazing through $101, up from below $61 during the early part of 2016.

These enormous figures imply that billions of dollars are available to invest in growth in engagement "globally at a record scale".