Neexio
01-23

$Alibaba(BABA)$ I don’t own shares at this time as I now rarely hold individual stocks. The valuation here has now gotten interesting. $170 billion market cap with over $70 billion in cash. Trading at 3x forward EBITDA and forward PE of 7. Being treated like it’s going the path of AOL when it definitely has significant growth opportunities in the world’s largest consumer market. At this valuation and this level of cash they should be very aggressively buying up shares and at a minimum reducing share count by 10%+ this year. If it hits $65 I may pick up a position. I can see this as a $200+ share price within 5 years.

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Comments

  • vakit
    01-23
    vakit
    I’m bearish, Alibaba dominated the ecommerce market in the old days but now there are more competitors like JD, Temu etc taking market share from Alibaba.
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