January 18th, 2022 | 10:25 CET
Alibaba, CoinSmart, TeamViewer: Where tech still brings returns
Table of contents:
Alibaba: The tech giant and the old economy
Alibaba's stock was considered an insider tip for many years. Anyone who thought Amazon was too expensive would bet on the Chinese version and do exceptionally well. But then the China tech wave broke. The trigger was the canceled IPO of Alibaba's fintech subsidiary Ant. Since then, Alibaba and Co. have been facing constant headwinds. The stock has lost more than 40% of its value in a year. For a blue chip, that is quite significant. But is the headwind justified at all?
Alibaba still has a large market position. While the central government in Beijing is demonstrating strength, in retrospect, it could remain a mere show of force accompanied by some regulatory measures. A look at the divisions also shows how well Alibaba is positioned. Among other things, the Company has a retail chain that fully relies on technology. Self-service checkouts are almost a relic of the past decade in China. Alibaba now wants to invest USD 10 billion in this same grocery chain. The goal: to improve processes. The end result could even be a spin-off of the chain. That should be less complicated than the planned IPO of Ant. Alibaba remains an exciting stock.
CoinSmart: Regulated to take off with crypto
The paper of the Canadian crypto company CoinSmart is also extremely exciting. Although the Company comes from overseas, it is taking an exceedingly "German" approach to its expansion. The Canadians follow the "regulation first" credo, meaning that all products and market entries, such as in Europe, are carried out within the respective regulatory framework. Growth stories in the crypto sector are often reminiscent of the Wild West: cowboys ride off into the sunset and settle wherever opportunities arise. Especially in the financial world, such behavior can take revenge in the long run. Regulators have the upper hand and can quickly stop overly brash startups in their tracks.
CoinSmart offers trading of cryptocurrencies and has further plans around blockchain. In an interview with Kapitalerhoehungen.de in December, CoinSmart CEO Justin Hartzman explained, "Our long-term goal is to become a full-service provider of blockchain-based financial services. That includes payment services and financial investment. Specifically, we want to offer credit and debit cards and tokenization of tangible assets, lending, NFTs, derivatives and margin trading, and credit offerings. The opportunities are vast, and the market is waiting for innovative solutions. We want to seize these opportunities and offer these solutions within the framework of a reliable and regulated platform," said the CEO, who will present online at the free International Investment Forum (IIF) event on February 17. As the Company also plans to market in Europe in 2022 to attract new customers, it might be worthwhile to get first-hand information and attend the thirty-minute lunchtime presentation, including a Q&A session. CoinSmart has recently released a company announcement, indicating record numbers for December and the final quarter of 2021.
TeamViewer: Big plans, high costs
Many investors would certainly be eager to listen to a presentation by TeamViewer's management these days. The reason is that the share price has recently risen significantly but is now consolidating somewhat. Following good figures, the share is attracting a lot of attention. Months ago, the authors of researchanalyst.com were already speculating about a possible takeover by SAP. TeamViewer is also well networked in other respects and works together with Apple and Google, among others. In addition, there are sensible acquisitions, such as in the area of augmented reality and Industry 4.0. On the other hand, there are high costs and intense competition. The TeamViewer share remains a bet on the future. But it is by no means uninteresting.
Tech companies are conquering more and more areas. Examples are Alibaba's involvement in retail or TeamViewer, which wants to win the industry as a customer with its solutions. The crypto market also brings entirely new opportunities and has the potential to turn the financial industry upside down. Therefore, tech investments remain interesting - possibly, especially after price corrections. In this context, speculative investors, in particular, should keep the CoinSmart share on their radar.
Conflict of interest
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