Alibaba Group Holding Ltd (NYSE:BABA) is in its “most dangerous moment” as per the company’s founder Jack Ma. Addressing at the World Internet Conference, Ma said, “Even two months before the IPO, people didn’t think we would make money. Now the problem is people think we are too good — we can do anything. This is the most dangerous moment.” What makes him feel so is the enormous amount of pressure in the form of expectations coming from multiple directions. Ma said that people are holding too much of expectations ever since its record successful IPO debut in the U.S. market.
A Warning or a Reminder
The recent eyebrow raising comments from Ma follows his previous concerns about the company. This is not the first time when Ma has opened up about the issues brimming within Alibaba Group Holding Ltd (NYSE:BABA). He had earlier pointed out the over-contended attitude of the employees and pause of innovation at the company. However, if RHB Research Institute analyst Li Yujie is to be believed then the remarks are not serious but a way to remind employees of the goals.
Diversifying Portfolio and Region
Post IPO listing in September, Alibaba Group Holding Ltd (NYSE:BABA) is diversifying its profile with inclusion of healthcare and digital entertainment. Ma has reason for doing that as he said that the lack of health and happiness will plague China in next ten years. In this direction, Ma is hunting for Hollywood movies and TV serials to prep up its video and entertainment content to be available on set-up boxes.
The company is constantly keeping tab on customer shopping habits and viewing data to predict about what productions will become hit among Chinese viewers.
China is no longer the only dominant territory for Alibaba Group Holding Ltd (NYSE:BABA) as it has been successful to position itself in Russia and Brazil through AliExpress. Further, the company’s online payment system, Alipay boasts of 17.9 million users cross 100 countries.
Ma has talked about various opportunities present around the world and is least interested to compete with Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY) in the U.S.