Jim Cramer Says In Terms of Profitability, Alibaba Is Not Amazon
Jim Cramer says he doesn't expect Alibaba's margins to continue to go down.
Alibaba delivered strong earnings in its first quarterly report since becoming a publicly traded company. The Chinese e-commerce company's revenue rose 54% to $2.74 billion, better than expected. The company also reported a 39% drop in net profit from the year ago period, due to costs associated with acquisitions. Jim Cramer says he doesn't expect margins to continue to go down. He says the company had to do a lot of investing for this quarter but that may not be the case for next quarter. He says this company has to be valued like Facebook and therefore it needs mobile expansion. Cramer says Alibaba is not for him because it's too expensive but it will be good for the growth managers.
