12-31-2015, 05:04 AM
One of the stocks we're following closely has some disappointing news out:
China's Yibada.com reports Alibaba (NYSE:BABA) is ending its travel services partnership with Ctrip (CTRP -2.7%), through which Ctrip's offerings are promoted on Alibaba's travel platform, on Jan. 1. The report comes two months after Ctrip struck a deal with Baidu to obtain a major stake in rival Qunar in exchange for Ctrip shares. Alibaba and Baidu compete in numerous markets (I, II). Alibaba launched its Alitrip travel brand in late 2014.
It isn't entirely surprising, considering the rivalry between Alibaba and Baidu. Difficult to assess the impact though. We're holding off buying, for now.