Should we invest in Baba or SEA in the long term. One way is to look at the earnings.
Baba:
P/E: 16.9
Earnings: $7.23 Per share
SEA :
P/E: loss
Earnings: -$3.74 per share
A company burns cash when they keep making losses. The only way to get cash is to borrow or issue equity.
A profitable company earns cash and gives out dividends or buy back shares.
Which company will you own ?
$Alibaba(BABA)$$Sea Ltd(SE)$
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