πππJust when you think it is safe to dip a toe into the water
$BABA-W(09988)$ fell a huge 8.6% in a single trading session. It announced an additional issuance of a massive USD 10 billion in corporate debt.
The deep value bulls see a golden opportunity to bargainhunt. In the AI race to be the best, computational infrastructure is everything. Alibaba is securing financial firepower required to build a dominant cloud computing network across Asia.
Alibaba is undervalued and oversold. Buying the stock means you are buying Alibaba at a deep discount.
Conversely, the Bears argued that if Alibaba's core domestic E commerce business was a highly cash generating machine, they would not need to issue USD 10 billion debt block.
In the short term, Alibaba is highly volatile but in the long term it is a heavily discounted cash flow machine waiting for turnaround.
The stock market is a voting machine in the short term but a weighing machine long term.
@Tiger_comments @TigerStars
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