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On Cyber Monday, the Alibaba stock price was up over 1.60% in mid-afternoon trading, despite Cyber Monday's limited appeal outside of the United States.
Cyber Monday sales totaled $2.65 billion in the United States, according to Adobe. But Alibaba Group Holding Ltd. (NYSE: BABA) has recorded massive sales in 2015 without the aid of the American shopping holiday.
You see, the rise or fall of the Alibaba stock price isn't connected to Black Friday or Cyber Monday.
In China, there is a shopping holiday known as "Singles' Day," which is essentially a spin-off of our Valentine's Day. It's the biggest day of the year for shoppers in China, and the biggest day of the year for Alibaba…
According to Forbes, Alibaba sold 57.1 billion yuan ($9.3 billion) in goods on Singles' Day in 2014. In 2015, Bloomberg reported that Alibaba recorded 91.2 billion yuan ($14.3 billion) in sales. That means Alibaba alone reported $6.65 billion more in sales on Singles' Day 2014 than the sales total of all American companies on Cyber Monday 2014.
The impressive increase for Alibaba is due to the vision of Alibaba's Executive Chairman, Jack Ma. Similar to Amazon.com Inc. (Nasdaq: AMZN), Alibaba has expanded itself as a leading provider of goods and services across a plethora of industries.
In early November, Alibaba announced it would buy the Chinese video site Youku Tudou Inc. (NYSE ADR: YOKU) for $3.6 billion dollars. Youku is known as the "Chinese YouTube" and boasts 580 million users, according to digital marketing company DMR.
Of course, the purchase of Youku was part of an even bigger plan to drive sales and increase revenue for Alibaba…
Part of the appeal of Youku for Jack Ma was that it houses well-known Chinese video bloggers. These bloggers already have a built-in audience, and Alibaba can promote its online retail site, online storefronts, and other services through these personalities.
These investments provided Alibaba with the 32% year-over-year revenue growth it announced in its last quarterly earnings report on Oct. 27.
The Alibaba stock price is up slightly today. But more importantly, Money Morning Executive Editor Bill Patalon believes that BABA stock "will have big future payoffs" for years to come…