Robert Way Intro & Thesis If you read my articles regularly, you probably know that I’m very skeptical about buying shares in Chinese companies in the long term – I’m particularly put off by the well-known VIE structure and the authoritarianism of the CCP that’s limiting China’s growth prospects, in my view. It was the…
DNY59 We previously covered Alibaba Group Holding Limited (NYSE:BABA) in November 2023, discussing its excellent CQ3’23 performance in the Cloud and e-commerce segments, since we believed these two segments might be the company’s long-term growth drivers. We had also added a small position then, with us believing that the summit between Biden and Xi was…
Andrew Burton Despite reporting decent earnings numbers last month, Alibaba’s (NYSE:BABA) stock failed to gain momentum and has been underperforming against the broader market in recent quarters. As international capital continues to leave China in droves while the geopolitical risks are on the rise, it’s safe to assume that Alibaba’s stock is likely to remain…
David Becker Since the last time I wrote about China’s e-commerce behemoth Alibaba Group Holding (NYSE:BABA) in December last year, its stock price has gone nowhere, with a ~2% decline since. Year-to-date [YTD], it has seen an even bigger fall (see chart below). This is hardly surprising considering that the company’s third quarter (Q3 FY24)…
Robert Way/iStock Editorial via Getty Images Alibaba Group Holding Limited (NYSE:BABA) is a company that needs little introduction. With an international presence spanning from retail to wholesale, from cloud computing to digital media, and from food delivery to venture capital, the Chinese e-commerce behemoth is difficult to ignore from either an investment or consumer standpoint,…
Andrew Burton Downgrade to hold Readers following our articles know that we have been bullish on Alibaba (NYSE:BABA) in the past 1~2 years. Well, this update is our throw-in-the-towel article. In the remainder of this article, we will detail why we’ve changed our mind and downgraded the stock to a HOLD after weighing several factors,…
loveguli Investment Thesis Alibaba Group Holding Limited (NYSE:BABA)(OTCPK:BABAF) was one of the most controversial stocks of 2021 and 2022. The fervour may have died down somewhat as certain dramatic scenarios that were suggested, e.g. being crushed by the Chinese government and delisted from U.S. stock exchanges, have not come to pass — and yet new…
Wang He Market sentiment and why I differ The Seeking Alpha analysts’ sentiments on Alibaba (NYSE:BABA) (OTCPK:BABAF) seems to be rather bullish. Wall St too is overwhelming bullish on the stock: Seeking Alpha and Wall St Ratings Summary on Alibaba (Seeking Alpha) However, I am not convinced of the bull case quite yet because: Sales…
GOCMEN Introduction It seems nothing can save Alibaba (NYSE:BABA) and its falling stock. The sentiment remains extremely negative, economic data from China don’t spark optimism either, and investors deploy their funds into large-cap American tech stocks since they have produced the best returns again. Chinese companies remain “uninvestable” according to many, as the environment around…
maybefalse/iStock Unreleased via Getty Images China’s e-commerce giant Alibaba (NYSE:BABA) has been quite the growth company, increasing its revenues by 15x over the past decade. However, the compounded annual growth rate [CAGR] of 31% over this time has slowed down considerably to 11% for the first half of the current financial year (H1 FY24, ending…
maybefalse/iStock Unreleased via Getty Images Investment thesis My previous bearish thesis about Alibaba (NYSE:BABA) aged well, as the stock tanked by almost 17% since mid-September. While I understand that the risks of investing in Chinese stocks in general and in Alibaba are inherently risky due to massive political risks and headwinds in the macro economy,…
Bjoern Wylezich/iStock via Getty Images What You Cannot Learn From Studying Charlie Munger When asked for the “trick” to get rich, Charlie Munger used to tell the following anecdote: It reminds me of the young guy who went up to Mozart and said, ‘I’d like to write symphonies.’ When Mozart said, ‘You’re too young,’ the…
theasis Thesis Summary Alibaba Group Holding (NYSE:BABA) reported its Q3 earnings last week, and the stock sold off, approaching a 52-week low. However, Alibaba showed a promising trend in profitability while still focusing on new growth initiatives. Furthermore, I see at least three possible catalysts that could take the stock higher: money, power and macro….
Andrew Burton It’s hard to call Alibaba’s (NYSE:BABA) latest earnings results which were released earlier this week successful. The company missed the revenue expectations, bailed on its plans to execute a cloud unit spin-off, and indirectly acknowledged that the new geopolitical reality could have a material effect on its cloud business and limit its upside….
She IPOs not, she IPOs, she IPOs not… VIDOK/E+ via Getty Images Reducing Hallucinations LLMs (large language models) such as ChatGPT have shown remarkable prowess in solving a broad range of problems, yet one of their remaining key issues are so-called “hallucinations”, i.e. their tendency to provide completely false information while sounding perfectly confident and…
Jack Ma Michael Loccisano Alibaba Group Holding Limited (NYSE:BABA) just released its fiscal third quarter earnings. The release was approximately in line with estimates on revenue and ahead of estimates on earnings per share (“EPS”). The release showed 27% growth in free cash flow, and included updates on Alibaba’s operational priorities and ongoing spinoff of…
Robert Way Undervalued companies can stay undervalued for far longer than we realize. This is a difficult-to-swallow truth, I know. When we identify a potentially undervalued company after conducting thorough research and investing in it at seemingly attractive prices, it is easy to be disheartened when the stock price goes nowhere over a long period….
Vertigo3d Alibaba’s AI future – Zhipu In focus The thesis of this article is straightforward. I will argue the market has mispriced Alibaba (NYSE:BABA) dramatically. As to be elaborated on in the remainder of this article, I see several key catalysts afoot, ranging from its AI potential to the macroscopic environment. Yet the stock is…
Robert Way Alibaba Group Holding Limited (NYSE:BABA) stock’s upward momentum has stalled since my previous update in August 2023. Investors were struck with negative headwinds from China’s property market malaise, which saw BABA top out in early August. BABA then went on a massive selling spree that saw it collapse nearly 25% through its late…
maybefalse/iStock Unreleased via Getty Images Opportunity Summary Amid a time of geopolitical uncertainty, international rate hikes and a slowing global economy Alibaba (NYSE:BABA) is trading at depressed levels. At the same time the Chinese government is doing their best to support the local tech-industry. The plan is to increase computing power by more than a…
Robert Way I am assigning a strong buy rating to Alibaba (NYSE:BABA) stock. Despite trading at its cheapest ever valuation, I will discuss 3 other reasons as to why I am buying Alibaba stock. Alibaba 10 year valuation metrics (Seeking Alpha ) 1. E-Commerce growth rate acceleration The Chinese retail e-commerce industry is expected to…
maybefalse/iStock Unreleased via Getty Images Article Thesis Alibaba Group Holding Limited (NYSE:BABA) is about to become a very different company due to the spin-offs it plans. Breaking up the company will unlock value that has, so far, not been realized. Alibaba has now taken the first step to break up the company, as its logistics…
Cloud maybefalse/iStock Unreleased via Getty Images Around four years back, I wrote an article on Alibaba : Significant Upside Left For Long Investors and argued that Alibaba (NYSE:BABA) has huge long-term potential. A lot has changed since then, both from the company front and the overall China growth scenario. In my view, Alibaba stock was…
Robert Way Alibaba’s stock (NYSE:BABA) has largely traded range-bound this year – finding repeated support at the $80s and resistance at the low $100s since topping $120 at the beginning of the year. The trend is consistent with the stock’s latest rally from the low $80s in June towards the low $100s in early August,…
Lintao Zhang China is in trouble, and it seems that Beijing is running out of options on how to fix the structural problems of its economy which is already on the brink of a deflation. Add to all of this the fact that the foreign capital continues to leave the country en masse and it…
maybefalse/iStock Unreleased via Getty Images Alibaba (NYSE:BABA) is rapidly diversifying its revenue base which will help the company reduce China-centric headwinds and build a longer growth runway. In the recent quarter, the International Commerce segment reported YoY revenue growth of 41% compared to a 14% overall growth rate. This shows that the International Commerce segment…
Ivan-balvan/iStock via Getty Images BABA Reported A Smashing FQ1’24 Performance – Well-Exceeding Expectations We previously covered Alibaba Group Holding Limited (NYSE:BABA) in July 2023, discussing the stock’s suitability for swing trades, since the ongoing geopolitical crossfire between the US and China made it unlikely for it to regain international investors’ confidence in the near term….
Robert Way Alibaba Group Holding Limited (NYSE:BABA) investors have been dealt another massive blow, despite the initial optimism from its recent first-quarter or Q1FY2024 earnings release. As such, the initial post-earnings surge has completely dissipated. The battering has resulted in BABA falling back toward levels last seen in early July. The recent property market crisis…
maybefalse/iStock Unreleased via Getty Images Alibaba (NYSE:BABA) is trading at close to its lowest PS ratio which shows that Wall Street is overlooking the growth potential in a number of segments. In the year ago quarter, Alibaba reported its first YoY revenue decline of 2.5%. Regulatory and macroeconomic challenges in the pandemic caused this decline….