Vipshop Holdings Ltd – ADR (VIPS), Alibaba Are Stocks To Watch: Jim Cramer

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In a program on CNBC, Jim Cramer said that Alibaba and Vipshop Holdings Ltd – ADR (NYSE:VIPS) are great options for the investors in the future. He talked about Alibaba’s IPO that is coming to the US next week and said that Alibaba is the fastest growing Chinese company and has a lot of potential to perform in the US. He said that Alibaba can further get a boost if it can penetrate into adjacent markets like India. Last year, Alibaba’s revenue went up by 62%. The company’s website processed transactions of no less than $248 billion which is more than transactions of Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY) combined. Cramer said that Alibaba’s business model is extremely profitable and he is yet to see any company with such impressive profits and growth.

Alibaba

Talking about Vipshop Holdings Ltd – ADR (NYSE:VIPS), Cramer said that Vipshop’s stock will continue to perform well in the rest of the year and it has already depicted a lot potential since last year.

“Vipshop Holdings Ltd – ADR (NYSE:VIPS) is a Chinese discount online discount retailer that throws flash sales, and it’s the leading player in its space, if you like the sound of Alibaba, you should know that Vipshop Holdings Ltd – ADR (NYSE:VIPS) is growing even more rapidly. Last quarter, the company posted a 136% revenue growth, driven by a 139% surge in orders and a 166% increase in active customers […],” said Cramer.

Cramer said that the Vipshop Holdings Ltd – ADR (NYSE:VIPS)’s revenues are also growing faster and it is dominating the sales market in China.  The company also has adapted the mobile platform, which is now giving a 36% share in its overall sales.

Cramer also said that if investors are reluctant to invest to Alibaba, they can invest in Yahoo! Inc. (NASDAQ:YHOO) as it has 24% stake in Alibaba.

Disclosure: None

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