King IV.
11-20

$Alibaba(BABA)$

Don't forget that 10 years ago, Alibaba's stock price was the same, but the company has since achieved significant lifetime sales and has fewer shares outstanding. Considering inflation, Alibaba is now much cheaper to buy than it was back then.

To understand the impact of inflation, we need to calculate the value of a dollar from 2014 to the present. Inflation reduces the purchasing power of money over time. Here's the formula to calculate the adjusted value of a dollar:

For example, if the CPI in 2014 was 100 and the CPI in 2024 is 120, the value of $1 in 2014 would be worth $1.20 in 2024.

This means that Alibaba's current stock price, when adjusted for inflation, represents a better value compared to its price 10 years ago.

The idea now is for Alibaba to buy back shares, but they held off so the market makers can buy and lock in a higher price. This lump-and-dump strategy is quite clever. Let's see how they close the year. I believe they should act quickly because the news in December could open up new opportunities. It's evident now.

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

  • balim
    11-22
    balim
    Useless stock to own! Why be a bag holder
Leave a comment
2