As we head into 2022, there’s reason to believe that the worst may finally be over for Chinese e-commerce giant $Alibaba(BABA)$ $Alibaba(09988)$ stock.
After abruising year in which Alibaba was subjected to numerous punishments by Chinese authorities, including a record $2.8 billionantitrust fine, it looks like the company is starting to get out from under the thumb of regulators.
This is good news for shareholders who have held onto BABA stock and watched it decline 50% during 2021.
Cheap at Current Levels
Analysts say the low valuation makes taking a position in BABA stock worth it. This is despite the risks posed by the Chinese government’s ongoing crackdown on publicly listed companies, particularly those in the domestic technology sector.
Going forward, analysts highlight Alibaba’s market leading position in e-commerce, artificial intelligence and cloud computing as reasons why the company and its stock should thrive. Among 51 professional analysts who cover the company, the median price target on Alibaba’s stock is $200.07, which would be much higher than its current level.
Lingering Uncertainty
Given its size (current market cap: $340 billion) and market leading position, Alibaba is a true best of breed Chinese company.
However, despite its success, BABA stock continues to suffer from the lingering uncertainty created by the government.
Alibaba’s share price recently took a hit after it was announced that Chinese ride hailing and food delivery company Didi Global(NYSE:DIDI) would delist from the New York Stock Exchange barely six months after holding its initial public offering (IPO).
The delistingspooked investorswho are worried that more Chinese companies will be forced to delist from overseas exchanges.
SOURCE: https://investorplace.com/2021/12/baba-stock-looks-to-be-out-of-the-woods-but-tread-carefully/
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