BABASheep
2022-03-27

$Alibaba(BABA)$BABA's share price DOWN? Congratulations.

Perplexed? For long term and value investors, this short term phenomenon should be celebrated. Why? Let me explain.

BABA just announced upsized $25B (Extra large coke and fries) share buybacks. 

Assume BABA has only 3 shareholders. The price to buyout a shareholder is $50. BABA use her profit of $100 to buy out 2 shareholders. If the price reduce to $30 per buyout, BABA buys out all 3 and even have $10 left.

Thus, for this period, the cheaper BABA share is, the more the $25 Billion can buy back. This will make long term holders much richer. Remember Ben's greatest words. Short Term voting machine Vs Long Term weighing machine. 

For the traders and punters, I wish you goodluck picking a side.

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Comments

  • BorisBack
    2022-03-28
    BorisBack
    China won’t allow baba to fail. Any dips & I’m adding more. Full disclosure, i’m a long term hold.
    • CrystalRose: 
      Looks like another great day for the chinese stocks tmr. Good luck to all who bought the dip last Friday. :D
  • Joelchua
    2022-03-27
    Joelchua
    While i wouldnt say $Alibaba(09988)$’s moat is as strong as a $Alphabet(GOOGL)$ or $Apple(AAPL)$, it has achieved massive network effect that I dont see how it will not be a trillion market cap
  • vaztan
    2022-03-28
    vaztan
    We are waiting for a positive catalyst to propel Baba shares upward. Ukraine peace agreement with Russia should do it .
  • StayHome
    2022-03-28
    StayHome
    Yes, waiting to buy $Alibaba(BABA)$ share if the price continue to dip further …. [Miser][Sly][Onlooker][USD]
  • CatherineGunter
    2022-03-28
    CatherineGunter
    Why are Bears still wanking each other off? Are they forgetting we went from 70 to 120 just under 2 weeks ago?
  • HilaryWilde
    2022-03-27
    HilaryWilde
    Alibaba is not for short-term speculators.
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