SoftBank CEO “Masayoshi Son said on Wednesday that his company has no plans to sell part of its stake in Alibaba in the initial public offering of the Chinese online retailer,” Reuters reported.
That may be a shrewd move by SoftBank because Alibaba conducts more e-commerce than Amazon (NasdaqGS: AMZN) and e-Bay (NasdaqGS: EBAY) combined and is far more profitable than Amazon. [Momentum ETFs Hit Hard Again]
Shares of SoftBank are down 2.6% today, but the stock’s trailing P/E of 18.2 is well below the 28.56 sported by Yahoo.
The WisdomTree Japan Hedged Tech, Media and Telecom Index (WTJTMTH) had a P/E of almost 22.6 and a price to book ratio of 1.52 as of May 6, according to WisdomTree data. DXJT is up nearly 1% since its debut.
DXJT Top-10 Holdings
Table Courtesy: WisdomTree
Tom Lydon’s clients own shares of Amazon.