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Money Morning Executive Editor William Patalon says China's largest retailer, Alibaba Group Holding Ltd. (NYSE: BABA), is fast becoming the global e-commerce king.
The BABA IPO was held on Sept. 18, 2014, and with shares issued at $68, the IPO raised $21.8 billion. Alibaba became the biggest U.S. IPO in history, easily surpassing those of Visa Inc. (NYSE: V) and Facebook Inc. (Nasdaq: FB).
And now he's making an even bolder forecast…
Wall Street "Experts" Are Still Underestimating Alibaba Stock
Alibaba is the sixth-largest retailer in the world right now and is often called "the Amazon of China." While that is high praise, it actually undersells Alibaba's real potential.
This past Nov. 11 was China's "Singles' Day," one of the biggest shopping days in the world. Bigger than Black Friday and Cyber Monday combined.
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And this year Alibaba absolutely crushed it, racking up over $25.3 billion in sales.
Check out the numbers BABA did during the 24 hours of Singles' Day:
- Sales were up 42% from the $17.8 billion the company made last year.
- It did nearly four times the revenue of Black Friday and Cyber Monday ($6.76 billion) combined.
- Revenue added up to more than the GDP of Iceland.
- It dominated the $1 billion Amazon moved during its most recent "Prime Day" – the
company's biggest sales day ever.
But that was just the bottom line. Look at these supporting numbers with regard to Alibaba's ability to take, process, and fulfill those orders:
- Alibaba offered 15 million products for sale.
- It featured 140,000 different brands.
- It cleared $1 billion (the amount Amazon cleared in a day) in its first two minutes.
- At one point, Alibaba was processing 325,000 orders per second.
- It delivered its first order within 13 minutes of purchase.
- It took 812 million orders that will be delivered in the next few days.
- It processed 1.48 billion orders through Alipay, the Chinese version of PayPal, and the
world's No. 1 mobile payment platform
- And Alibaba said that 90% of its orders came via mobile phones – up from 82% last year and way above the 30% number for Black Friday here in the United States last year.
But even after Alibaba stock has gained more than 115% this year to date, Wall Street still undervalues the stock.
And now Patalon says this is a "single-stock wealth machine." Here's why…