Two Observations From Alibaba's (NYSE:BABA) Decline

Simply Wall St2022-04-12

It is fascinating that even after months of steady declines, Alibaba Group Holding Limited(NYSE: BABA) still trades at a price-to-earnings (P/E) ratio of close to 30.Yet, there are 2 interesting ...

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Comments

winstonleong
2022-04-13
winstonleong
Ok
BigBeef
2022-04-12
BigBeef
BABA was finished the moment the government forced Jack Ma out. You cannot expect a company to innovate and grow when its wings are constantly being clipped. Same for Tencent.
Long for long time
2022-04-12
Long for long time
Now once the China eases their economic policy institutional investors will jump in.Price will jump to Just hold on to your stocks !!!
MSTAN
2022-04-12
MSTAN
👌👌
米可淇
2022-04-12
米可淇
Who to blame?
JeremyCcccc
2022-04-12
JeremyCcccc
Bear zzz

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First, the stock doesn't have a significant short interest, and second – institutional investors are slowly stepping away.Lack of Short InterestWhen we research the companies that experienced substantial declines, we often see high short interests, sometimes well into double-digits.NYSE: BABA Short Interest 2021/2022, Source:MarketBeatYet, we cannot say the same for Alibaba. The stock lost over 65% from the peak, but short interest never went over 3%. Thus, we can conclude that this decline was not speculative but rather due to deteriorating investors' confidence to accept higher valuation.Tracking the Ownership Change Over the MonthsAs we periodically track the ownership changes of the stock over the months, here are 3 snapshots from the last few quarters.1. August 2021NYSE: BABA Ownership Breakdown August 20th, 20212. December 2021NYSE: BABA Ownership Breakdown December 8th, 20213. 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If anything, insiders decreased their stake from 3.3% to 3%. The second one is a gradual decrease of interest from institutional investors, who slowly reduced their stake by over 5%. 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You cannot expect a company to innovate and grow when its wings are constantly being clipped. Same for Tencent.","listText":"BABA was finished the moment the government forced Jack Ma out. You cannot expect a company to innovate and grow when its wings are constantly being clipped. Same for Tencent.","text":"BABA was finished the moment the government forced Jack Ma out. You cannot expect a company to innovate and grow when its wings are constantly being clipped. Same for Tencent.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9017825270","repostId":1178120671,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9017351324,"gmtCreate":1649749585326,"gmtModify":1676534563964,"author":{"id":"3577190621560000","authorId":"3577190621560000","name":"Long for long time","avatar":"https://static.tigerbbs.com/dbd3c2d2c42ed033955617d50df978c2","vip":1,"crmLevel":1,"crmLevelSwitch":0},"htmlText":"Now once the China eases their economic policy institutional investors will jump in.Price will jump to&nbsp;Just hold on to your stocks !!!","listText":"Now once the China eases their economic policy institutional investors will jump in.Price will jump to&nbsp;Just hold on to your stocks !!!","text":"Now once the China eases their economic policy institutional investors will jump in.Price will jump to Just hold on to your stocks !!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9017351324","repostId":1178120671,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9017363598,"gmtCreate":1649746735748,"gmtModify":1676534563494,"author":{"id":"4089461104605170","authorId":"4089461104605170","name":"MSTAN","avatar":"https://static.itradeup.com/news/1d0ff53a35c30afecbd1fa0c5ed59f07","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"👌👌","listText":"👌👌","text":"👌👌","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9017363598","repostId":1178120671,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9017973557,"gmtCreate":1649740209830,"gmtModify":1676534561948,"author":{"id":"3573794238360647","authorId":"3573794238360647","name":"米可淇","avatar":"https://community-static.tradeup.com/news/7103384b202feabc1b45562f16cb0bf5","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Who to blame?","listText":"Who to blame?","text":"Who to blame?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9017973557","repostId":1178120671,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9017928166,"gmtCreate":1649738120323,"gmtModify":1676534561294,"author":{"id":"4089499026613770","authorId":"4089499026613770","name":"JeremyCcccc","avatar":"https://static.itradeup.com/news/110f1753ebe99c114721ba94b7030c57","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Bear zzz","listText":"Bear zzz","text":"Bear zzz","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9017928166","repostId":1178120671,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":145,"commentSize":19,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1178120671"}