What’s the future for an e-commerce company with over half a million customers? According to JPMorgan, it’s data. The company recently forecasted Alibaba’s shares to surge over the next year as they begin to develop a robust data strategy including data monetization.
We believe Alibaba’s core commerce is expanding from traffic monetization to data monetization and this trend will quickly expand to its media/cloud businesses, Yao wrote in a note to clients Tuesday. “Such expansion not only allows Alibaba to tap into non-transaction-based corporate budget (e.g. market research, brand awareness, customer service), but also supports our investment thesis based on sustainable revenue/earnings growth.”
Alibaba’s shift in focus to data monetization is another example of companies capitalizing on the potential of their data. Alibaba’s success at this strategy could mean even more explosive growth for the Chinese company that already has a huge market share in the e-commerce space.