Hi folks,
Many thanks for ur feedbacks - u definitely follow SE much closer than me. Appreciate ur rebuttal of my concerns!
-
If SE is 3p e-commerce retailer the business model is much better (in my eyes) for shareholders and margins will be substantially higher than 1p. I just have developed allergy toward 1p retailers after having owned JD and Zooplus (aka European Chewy). Just checked their last report - indeed 3p is much bigger than 1p. They should be able at some point to reach GM margins of SHOP in Meli in this case.
-
What about Capex? Even 3p model is pretty capex intensive. In recent years/quarters Alibaba had to substantially invest in capex in order to build reliable delivery network. I expect that if SE is growing they should be massively investing in capex.
-
Agree that even if Lazada grows like weed in South East Asia backed by BABA this does not mean that SE will loose. Could be the opposite. Expect more competition - think PDD appearing in China and competing with BABA and JD. Again does not mean SE will loose.
-
Agree on the potentially very powerful virtuous circle of having a platform integrating online shopping, payments, entertainment (games) etc. Could be very powerful business model.
-
I think that there will be a valuation discount (most likely) compared to US companies due to the fact of being located where it is. But this could be already in the price.
-
Didn’t dig into gaming part, cannot comment much about that but wasn’t the company pretty much dependent on Tencent for this part? Aka concentration risk. Should Tencent decide (most likely they will not) terminate partnership, SE gaming part would suffer?
Bottom line - appreciate a lot all comments above which corrected me putting SE into 1p e-commerce category. 3p model is much more rewarding for shareholders in my eyes. Worth taking a second and closer look for me!
Many thanks and best regards,
Vic