Alibaba owns 11.5 million shares of Zulily as of Friday, May 8, giving the Chinese e-commerce company a 9.2% stake in the company, according to the Wall Street Journal. Before buying more shares in the company last week Alibaba owned just under 7 million shares of Zulily.
Alibaba spent about $56 million buying shares of Zulily last week.
While Alibaba owns a stake in Zulily, the Chinese company has no interest in acquiring the online retailer, according to the Journal.
About 4.8 million shares of Zulily were traded by 9:38 a.m. Monday, above the company's average trading volume of about 3.2 million shares a day.
TheStreet Ratings team rates ZULILY INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZULILY INC (ZU) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: