Alibaba’s stake in Snapchat may buoy mobile portfolio

RenZ.JustinChina Daily USA
Z. Justin Ren, School of Management

China’s e-commerce giant Alibaba Group Holding Ltd is reportedly in talks to provide funding to US messaging company Snapchat, further adding to the Hangzhou-based company’s string of investments in American companies leading up to its IPO debut in the United States…

Expert quote:

“It can be an effort to increase its relevance in the new economy. Alibaba is mainly a technology company, and it desires to stay at the forefront of the high-tech world. In China, PC-based e-commerce is stagnating while mobile-based commerce is the new wave. Because Alibaba is currently lagging behind Tencent in market share in mobile e-commerce, investing in Snapchat may be one of the company’s efforts to beat its competition and win more market share on the mobile platform.”

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