Wanda Needham
11-11

$Alibaba(BABA)$

People are selling it because of a disappointment on stimulus spending however it is a company that has multiple segments that are growing quickly and other segments that are extremely profitable. They have reeled in their capital expenditure and their discipline has improved. They are no longer diluting shareholders, buying back shares and paying a dividend. If you look at the bond market you'll see how low the yield is on their bonds which indicates a lot as Bond markets are much more rational and subject to sentiment versus the equity Market. The only reason you would have negative feelings for Alibaba is if you think they were going to be nationalized which is just silly. Alibaba and most big Chinese tech companies get most of their Revenue from China so trade shouldn't hurt too much.

Tencent Beats! Can Alibaba Deliver Surprise Earnings?
Chinese technology giant Tencent Holdings posted on Wednesday a 8% rise in third-quarter revenue, extending momentum in its gaming business, while growth in its fintech segments softened amid China's economic headwinds. Alibaba will release earnings reports on Friday. Which company do you favor?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment