Joe W personal page - To The Moon

Joe W

Joe W

No personal profile

25Follow

2Followers

0Topic

0Badge

07-25

No way! This is shitty stock!

Alibaba: Too Cheap To Ignore

01-20

$Tesla Motors(TSLA)$ Time to buy

01-14

Microsoft will take over.

2023-12-23

$Tiger Brokers(TIGR)$ Wishing everybody a joyous Christmas filled with love, warmth, and cherished moments. May the festive season bring peace and happiness to you and your loved ones.

2023-12-12

$Sea Ltd(SE)$ Come on... what's the point to invest this company still losing money every year until today?

2023-12-01

$Tesla Motors(TSLA)$ Tesla will bullish because Cybertruck design is so special and bold, only Tesla make it.

2023-06-05

Good article I enjoyed reading about it.

1 Growth Stock Down 75% to Buy Right Now

2023-05-25

I just sold Nvidia stock made decent return after a long wait, awesome!

Semiconductor Shares Extended Gains in Morning Trading, With Nvidia Soaring 28%

Go to Tiger App to see more news

{"i18n":{"language":"en_US"},"userPageInfo":{"id":"4094514682190670","uuid":"4094514682190670","gmtCreate":1631631726627,"gmtModify":1688562763332,"name":"Joe W","pinyin":"joewjoew","introduction":"","introductionEn":"","signature":"","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","hat":null,"hatId":null,"hatName":null,"vip":1,"status":2,"fanSize":2,"headSize":25,"tweetSize":9,"questionSize":0,"limitLevel":999,"accountStatus":4,"level":{"id":1,"name":"萌萌虎","nameTw":"萌萌虎","represent":"呱呱坠地","factor":"评论帖子3次或发布1条主帖（非转发）","iconColor":"3C9E83","bgColor":"A2F1D9"},"themeCounts":0,"badgeCounts":0,"badges":[],"moderator":false,"superModerator":false,"manageSymbols":null,"badgeLevel":null,"boolIsFan":false,"boolIsHead":false,"favoriteSize":1,"symbols":null,"coverImage":null,"realNameVerified":"success","userBadges":[{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.06.11","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001},{"badgeId":"972123088c9646f7b6091ae0662215be-2","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Master Trader","description":"Total number of securities or futures transactions reached 100","bigImgUrl":"https://static.tigerbbs.com/ad22cfbe2d05aa393b18e9226e4b0307","smallImgUrl":"https://static.tigerbbs.com/36702e6ff3ffe46acafee66cc85273ca","grayImgUrl":"https://static.tigerbbs.com/d52eb88fa385cf5abe2616ed63781765","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.08.30","exceedPercentage":"80.24%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},{"badgeId":"44212b71d0be4ec88898348dbe882e03-2","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Executive Tiger","description":"The transaction amount of the securities account reaches $300,000","bigImgUrl":"https://static.tigerbbs.com/9d20b23f1b6335407f882bc5c2ad12c0","smallImgUrl":"https://static.tigerbbs.com/ada3b4533518ace8404a3f6dd192bd29","grayImgUrl":"https://static.tigerbbs.com/177f283ba21d1c077054dac07f88f3bd","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.08.16","exceedPercentage":"80.50%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1101},{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.29","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1102},{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":1,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.29","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100}],"userBadgeCount":5,"currentWearingBadge":{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":1,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.29","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},"individualDisplayBadges":null,"crmLevel":5,"crmLevelSwitch":1,"location":null,"starInvestorFollowerNum":0,"starInvestorFlag":false,"starInvestorOrderShareNum":0,"subscribeStarInvestorNum":0,"ror":null,"winRationPercentage":null,"showRor":false,"investmentPhilosophy":null,"starInvestorSubscribeFlag":false},"baikeInfo":{},"tab":"post","tweets":[{"id":331398810468424,"gmtCreate":1721915607215,"gmtModify":1721915610796,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"No way! This is shitty stock!","listText":"No way! This is shitty stock!","text":"No way! This is shitty stock!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/331398810468424","repostId":"2454865436","repostType":2,"repost":{"id":"2454865436","kind":"highlight","pubTimestamp":1721876447,"share":"https://ttm.financial/m/news/2454865436?lang=&edition=fundamental","pubTime":"2024-07-25 11:00","market":"us","language":"en","title":"Alibaba: Too Cheap To Ignore","url":"https://stock-news.laohu8.com/highlight/detail?id=2454865436","media":"Seeking Alpha","summary":"Alibaba has followed the growth of China, which is now beginning to see the maturation of its e-commerce.However, the company has excellent margins and satisfactory results.P/E ratio below historical ","content":"<html><head></head><body><ul style=\"\"><li><p>Alibaba has followed the growth of China, which is now beginning to see the maturation of its e-commerce.</p></li><li><p>However, the company has excellent margins and satisfactory results.</p></li><li><p>P/E ratio below historical figures makes Alibaba a compelling investment opportunity.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/84b6aeab08dc480ef3a214462aadfcfd\" alt=\"Robert Way\" title=\"Robert Way\" tg-width=\"750\" tg-height=\"500\"/><span>Robert Way</span></p><h2 id=\"id_3898549945\">Investment Thesis</h2><p>I recommend buying Alibaba Group (NYSE:BABA) (OTCPK:BABAF) shares. China continues to be the leader in global e-commerce, and the Chinese company Alibaba is one of the main players in this market.</p><p>But despite its excellent margins, the valuation is extremely discounted. This is due to geopolitical risks, but in my opinion they are being overestimated given the company&#39;s business and geographic diversification.</p><h2 id=\"id_2644318502\">Introduction</h2><p>Projections indicate that the e-commerce market should reach $5.14 trillion by the end of 2024, and is expected to show a CAGR of 15% between 2019 and 2024. China remains the leader in this market, representing more than 50% of all e-commerce sales in the world.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7e75bd64727935aae2614deb76cf7def\" alt=\"E-Commerce Market (Statista)\" title=\"E-Commerce Market (Statista)\" tg-width=\"640\" tg-height=\"559\"/><span>E-Commerce Market (Statista)</span></p><p>The market is forecast to reach $3.3 trillion in 2025, with Alibaba being the pioneering and most relevant company in e-commerce to date, which supports my recommendation to buy. Let&#39;s learn a little more about the history of Alibaba and its business model below.</p><h2 id=\"id_425806553\">History And Business Model</h2><p>Alibaba was founded in 1999 by Jack Ma, and then I brought up the company&#39;s timeline.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/9e75126f0f15e7900aa64afeeac4e54a\" alt=\"EcomCrew (Timeline)\" title=\"EcomCrew (Timeline)\" tg-width=\"640\" tg-height=\"422\"/><span>EcomCrew (Timeline)</span></p><p>The business model is similar to that of Amazon (NASDAQ:AMZN), however, the company divides its business into several subsidiaries, as we will see below in the breakdown of its revenues.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6f876d65c2f8b851f2aa57ffbd4b579a\" alt=\"Alibaba Revenue Breakdown (Investopedia)\" title=\"Alibaba Revenue Breakdown (Investopedia)\" tg-width=\"578\" tg-height=\"349\"/><span>Alibaba Revenue Breakdown (Investopedia)</span></p><p>Let’s better understand each segment of the business:</p><h3 id=\"id_3379697306\">Taobao and Tmall Group</h3><p>Taobao is a platform whose business model is based on selling advertising. Sellers pay for advertisements to increase the visibility of their products. Tmall is B2C, that is, aimed at large brands, and monetizes by charging commissions per sale. These segments represent around 43% of the company&#39;s revenue and have an operating margin of 46%.</p><h3 id=\"id_4169506896\">Cloud Intelligence Group</h3><p>Alibaba Cloud is the cloud computing segment, where the company offers data storage, big data, and AI solutions in a subscription-based compensation model. This segment corresponds to 10% of the company&#39;s revenue and has an operating margin of 8.4%.</p><h3 id=\"id_1373801151\">International and Digital Commerce Group</h3><p>In this segment, we have AliExpress, Trendyol, Lazada and Alibaba. AliExpress is a B2C platform, that is, it allows consumers to buy products from local manufacturers, and the platform is remunerated with commissions, advertising, logistics and support. Alibaba is similar to AliExpress, but it is B2B.</p><p>Trendyol and Lazada represent the company&#39;s international expansion. Lazada focuses on Southeast Asia, being one of the most relevant e-commerce in the region, while Trendyol has a greater focus on Turkey. The international segments represent 10% of revenue and have an operational margin of -11%.</p><h3 id=\"id_3048247864\">Cainiao</h3><p>Finally, among the most relevant businesses is Cainiao, which has 10% relevance to the company&#39;s revenues and has an operating margin of 3.3%. This segment is responsible for storage, delivery, and transport services in more than 200 countries.</p><p>In my opinion, this diversification of businesses and geographies strengthens Alibaba&#39;s business model, corroborating my purchase recommendation. However, I believe it is more viable to compare Alibaba with its global competitors, Amazon, <a href=\"https://laohu8.com/S/MELI\">MercadoLibre</a> (NYSE:MELI) and Sea (NYSE:SE). Therefore, I will do a comparative analysis of the fundamentals of major global retailers below.</p><h2 id=\"id_1660849932\">Alibaba Fundamentals</h2><p>Below, we have a financial analysis of Alibaba against its competitors around the world.</p><table style=\"border-collapse:collapse;\"><tbody><tr><td style=\"text-align:left;\"><p>Ticker</p></td><td style=\"text-align:left;\"><p>BABA</p></td><td style=\"text-align:left;\"><p>AMZN</p></td><td style=\"text-align:left;\"><p>SE</p></td><td style=\"text-align:left;\"><p>MELI</p></td></tr><tr><td style=\"text-align:left;\"><p>Country</p></td><td style=\"text-align:left;\"><p>China</p></td><td style=\"text-align:left;\"><p>USA</p></td><td style=\"text-align:left;\"><p>Singapore</p></td><td style=\"text-align:left;\"><p>Argentina</p></td></tr><tr><td style=\"text-align:left;\"><p>Market Cap</p></td><td style=\"text-align:left;\"><p>$185B</p></td><td style=\"text-align:left;\"><p>$2T</p></td><td style=\"text-align:left;\"><p>$41B</p></td><td style=\"text-align:left;\"><p>$88B</p></td></tr><tr><td style=\"text-align:left;\"><p>Revenue</p></td><td style=\"text-align:left;\"><p>$30B</p></td><td style=\"text-align:left;\"><p>$143B</p></td><td style=\"text-align:left;\"><p>$3.7B</p></td><td style=\"text-align:left;\"><p>$4.3</p></td></tr><tr><td style=\"text-align:left;\"><p>Revenue Growth 5 Years [CAGR]</p></td><td style=\"text-align:left;\"><p>20%</p></td><td style=\"text-align:left;\"><p>20%</p></td><td style=\"text-align:left;\"><p>68%</p></td><td style=\"text-align:left;\"><p>58%</p></td></tr><tr><td style=\"text-align:left;\"><p>EBITDA Margin</p></td><td style=\"text-align:left;\"><p>19%</p></td><td style=\"text-align:left;\"><p>16%</p></td><td style=\"text-align:left;\"><p>4%</p></td><td style=\"text-align:left;\"><p>18%</p></td></tr><tr><td style=\"text-align:left;\"><p>Net Income Margin</p></td><td style=\"text-align:left;\"><p>8.5%</p></td><td style=\"text-align:left;\"><p>6.3%</p></td><td style=\"text-align:left;\"><p>0.3%</p></td><td style=\"text-align:left;\"><p>7.2%</p></td></tr><tr><td style=\"text-align:left;\"><p>ROE</p></td><td style=\"text-align:left;\"><p>6.3%</p></td><td style=\"text-align:left;\"><p>20%</p></td><td style=\"text-align:left;\"><p>0.8%</p></td><td style=\"text-align:left;\"><p>41%</p></td></tr></tbody></table><p>Amazon and Alibaba have had equal revenue growth over the last 5 years; however, the magnitude of Amazon&#39;s revenue is much greater, which shows that the American company has been dealing better with the &#34;pains&#34; of growth.</p><p>However, I highlight Alibaba&#39;s extremely attractive level of EBITDA and net margin against its competitors. This shows that the company did not give up profitability to grow and corroborates my investment thesis. But is this in the price?</p><h2 id=\"id_4085845064\">Valuation Is Extremely Attractive</h2><p>To carry out the company&#39;s valuation, I will use the comparative valuation method with P/E and PEG.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/0c10168418a94ee9e48a5abfb328209e\" alt=\"P/E and PEG (Seeking Alpha)\" title=\"P/E and PEG (Seeking Alpha)\" tg-width=\"418\" tg-height=\"185\"/><span>P/E and PEG (Seeking Alpha)</span></p><p>The company presents a relevant discount to peers in both P/E and PEG. The companies&#39; average P/E multiple is 38x, well above Alibaba. Therefore, we will base ourselves on the PEG, which considers the company&#39;s growth.</p><p>In this case, we have an average of 1.33x PEG, which implies a sensible upside potential of 37% for the shares, corroborating my recommendation to buy. Now, let&#39;s see what Seeking Alpha&#39;s Quant tools tell us.</p><h2 id=\"id_1952384929\">Alibaba According To Quant Rating And Factor Grades</h2><p>Below we have the grades, where the company earns an excellent grade only in profitability.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3e4c59a7de1cb41b8cdddca8c1f6f428\" alt=\"Quant Rating And Factor Grades (Seeking Alpha)\" title=\"Quant Rating And Factor Grades (Seeking Alpha)\" tg-width=\"640\" tg-height=\"183\"/><span>Quant Rating And Factor Grades (Seeking Alpha)</span></p><p>The Quant Rating recommendation is to hold the shares. This is due to the valuation grade, which I, personally, don&#39;t agree with, as I showed in the chapter above. However, the terrible growth rating draws attention, and I will discuss this in depth in the risks chapter, but first let&#39;s check what the company&#39;s latest results have been like.</p><h2 id=\"id_3561014253\">Latest Earnings Results</h2><p>Alibaba released good results in 1Q24, even beating market revenue estimates, as we can see in the table below. Furthermore, Alibaba also repurchased $3.1 billion in common shares, another sign of how cheap the company&#39;s shares are, corroborating my recommendation to buy the shares.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/443c3ce5ecdff24dd6b784a2f49a1f93\" alt=\"Forecasts (Investing)\" title=\"Forecasts (Investing)\" tg-width=\"640\" tg-height=\"62\"/><span>Forecasts (Investing)</span></p><p>However, during the earnings conference call, when asked about the growth in customer management revenue, management advised analysts to be realistic with their projections due to the complex macroeconomic environment, and this brings me to the chapter on risks to the thesis.</p><h2 id=\"id_1139708273\">The Big Risk For The Thesis</h2><p>The big risk to the thesis is geopolitical issues that encompass the relationship between the United States, China, Taiwan and the upcoming presidential election.</p><p>It is important to remember that in his first term, Trump stated that he would honor the one-China policy, however what came after was a major Trade War with the Chinese.</p><p>In March 2018, tariffs were announced on Chinese imports worth $50 billion, and in July, the war intensified with new tariffs worth $34 billion, hitting Alibaba&#39;s business hard.</p><p>In 2019, Trump increased tariffs from 10% to 25% on $200 billion in Chinese products, and what has happened to Alibaba&#39;s share price since then?</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2c65e96adcf903504bb2c2a00a7c1cc5\" alt=\"Price (Seeking Alpha)\" title=\"Price (Seeking Alpha)\" tg-width=\"640\" tg-height=\"211\"/><span>Price (Seeking Alpha)</span></p><p>We saw the price drop from $300 to less than $100 per share. Therefore, with Trump&#39;s return in a scenario of even greater geopolitical instability than in his first term, there is a high chance of great volatility in stocks. Now, I will present other risks.</p><h2 id=\"id_4292157221\">Other Potential Threats To The Bullish Thesis</h2><p>Combined with the complex macroeconomic environment, even mentioned by the company&#39;s management, competition is increasingly aggressive. The company faces competition from Pinduoduo, with a business model focused on group purchases, and Douyin, focused on content and e-commerce.</p><p>Although the Chinese market is gigantic, it is starting to mature. Therefore, the customer acquisition cost for Alibaba has increased over time, although it is still 17% lower than Pinduoduo.</p><p>Finally, there is a perception that Alibaba and its competitors&#39; products are of low quality, which makes it difficult to achieve greater penetration in markets with high purchasing power, such as America and Europe. The risks to the thesis are diverse, and investors should be cautious when analyzing the company.</p><h2 id=\"id_1349122520\">The Bottom Line</h2><p>Despite the possibility of Trump&#39;s re-election, the company has taken several initiatives to diversify types of business and geographies, diversifying its business internationally and remaining competitive.</p><p>The company continues to be the leader in its market, and although China sees maturity in its market, this does not match the company&#39;s attractive valuation and margins.</p><p>Based on this analysis, I recommend buying Alibaba shares. Current prices suggest a dire scenario for the company compared to its peers. In my view, it has a great risk-return ratio.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba: Too Cheap To Ignore</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba: Too Cheap To Ignore\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-25 11:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4706362-alibaba-too-cheap-to-ignore><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Alibaba has followed the growth of China, which is now beginning to see the maturation of its e-commerce.However, the company has excellent margins and satisfactory results.P/E ratio below historical ...</p>\n\n<a href=\"https://seekingalpha.com/article/4706362-alibaba-too-cheap-to-ignore\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0080751232.USD":"富达环球多元动力基金A","SG9999014492.USD":"NIKKO AM ASEAN EQUITY \"A\" (USD) ACC","BK4579":"人工智能","LU0880133367.SGD":"UBS (LUX) EQUITY FUND CHINA OPPORTUNITY USD \"P\" (SGD) ACC","09988":"阿里巴巴-W","BK4532":"文艺复兴科技持仓","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","BK1502":"双十一","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","LU0229945570.USD":"TEMPLETON BRIC \"A\" (USD) ACC","SGXZ58947870.SGD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (SGDHDG) INC","BK1584":"蚂蚁金服概念","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","LU0307460666.USD":"EASTSPRING INVESTMENTS CHINA EQUITY \"A\" ACC","LU0251143458.SGD":"Fidelity Emerging Markets A-SGD","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","BK4085":"互动家庭娱乐","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","BK4527":"明星科技股","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4548":"巴美列捷福持仓","BK4524":"宅经济概念","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","LU0370786039.SGD":"Fidelity Greater China A-SGD","BK1142":"互联网与直销零售","BK4581":"高盛持仓","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","BK1501":"阿里概念股","LU0261945553.USD":"FIDELITY ASEAN \"A\" ACC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0314109678.HKD":"MANULIFE GF DRAGON GROWTH \"AA\" (HKD) INC","BK4526":"热门中概股","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","LU0196878994.USD":"MANULIFE GF CHINA VALUE \"AA\" (USD) INC","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","LU0228367735.SGD":"Eastspring Investments - Asian Equity Fund AS SGD","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE00B19Z8W00.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"A\" INC","BABA":"阿里巴巴","LU0140636845.USD":"施罗德大中华区股票A Acc"},"source_url":"https://seekingalpha.com/article/4706362-alibaba-too-cheap-to-ignore","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2454865436","content_text":"Alibaba has followed the growth of China, which is now beginning to see the maturation of its e-commerce.However, the company has excellent margins and satisfactory results.P/E ratio below historical figures makes Alibaba a compelling investment opportunity.Robert WayInvestment ThesisI recommend buying Alibaba Group (NYSE:BABA) (OTCPK:BABAF) shares. China continues to be the leader in global e-commerce, and the Chinese company Alibaba is one of the main players in this market.But despite its excellent margins, the valuation is extremely discounted. This is due to geopolitical risks, but in my opinion they are being overestimated given the company's business and geographic diversification.IntroductionProjections indicate that the e-commerce market should reach $5.14 trillion by the end of 2024, and is expected to show a CAGR of 15% between 2019 and 2024. China remains the leader in this market, representing more than 50% of all e-commerce sales in the world.E-Commerce Market (Statista)The market is forecast to reach $3.3 trillion in 2025, with Alibaba being the pioneering and most relevant company in e-commerce to date, which supports my recommendation to buy. Let's learn a little more about the history of Alibaba and its business model below.History And Business ModelAlibaba was founded in 1999 by Jack Ma, and then I brought up the company's timeline.EcomCrew (Timeline)The business model is similar to that of Amazon (NASDAQ:AMZN), however, the company divides its business into several subsidiaries, as we will see below in the breakdown of its revenues.Alibaba Revenue Breakdown (Investopedia)Let’s better understand each segment of the business:Taobao and Tmall GroupTaobao is a platform whose business model is based on selling advertising. Sellers pay for advertisements to increase the visibility of their products. Tmall is B2C, that is, aimed at large brands, and monetizes by charging commissions per sale. These segments represent around 43% of the company's revenue and have an operating margin of 46%.Cloud Intelligence GroupAlibaba Cloud is the cloud computing segment, where the company offers data storage, big data, and AI solutions in a subscription-based compensation model. This segment corresponds to 10% of the company's revenue and has an operating margin of 8.4%.International and Digital Commerce GroupIn this segment, we have AliExpress, Trendyol, Lazada and Alibaba. AliExpress is a B2C platform, that is, it allows consumers to buy products from local manufacturers, and the platform is remunerated with commissions, advertising, logistics and support. Alibaba is similar to AliExpress, but it is B2B.Trendyol and Lazada represent the company's international expansion. Lazada focuses on Southeast Asia, being one of the most relevant e-commerce in the region, while Trendyol has a greater focus on Turkey. The international segments represent 10% of revenue and have an operational margin of -11%.CainiaoFinally, among the most relevant businesses is Cainiao, which has 10% relevance to the company's revenues and has an operating margin of 3.3%. This segment is responsible for storage, delivery, and transport services in more than 200 countries.In my opinion, this diversification of businesses and geographies strengthens Alibaba's business model, corroborating my purchase recommendation. However, I believe it is more viable to compare Alibaba with its global competitors, Amazon, MercadoLibre (NYSE:MELI) and Sea (NYSE:SE). Therefore, I will do a comparative analysis of the fundamentals of major global retailers below.Alibaba FundamentalsBelow, we have a financial analysis of Alibaba against its competitors around the world.TickerBABAAMZNSEMELICountryChinaUSASingaporeArgentinaMarket Cap$185B$2T$41B$88BRevenue$30B$143B$3.7B$4.3Revenue Growth 5 Years [CAGR]20%20%68%58%EBITDA Margin19%16%4%18%Net Income Margin8.5%6.3%0.3%7.2%ROE6.3%20%0.8%41%Amazon and Alibaba have had equal revenue growth over the last 5 years; however, the magnitude of Amazon's revenue is much greater, which shows that the American company has been dealing better with the \"pains\" of growth.However, I highlight Alibaba's extremely attractive level of EBITDA and net margin against its competitors. This shows that the company did not give up profitability to grow and corroborates my investment thesis. But is this in the price?Valuation Is Extremely AttractiveTo carry out the company's valuation, I will use the comparative valuation method with P/E and PEG.P/E and PEG (Seeking Alpha)The company presents a relevant discount to peers in both P/E and PEG. The companies' average P/E multiple is 38x, well above Alibaba. Therefore, we will base ourselves on the PEG, which considers the company's growth.In this case, we have an average of 1.33x PEG, which implies a sensible upside potential of 37% for the shares, corroborating my recommendation to buy. Now, let's see what Seeking Alpha's Quant tools tell us.Alibaba According To Quant Rating And Factor GradesBelow we have the grades, where the company earns an excellent grade only in profitability.Quant Rating And Factor Grades (Seeking Alpha)The Quant Rating recommendation is to hold the shares. This is due to the valuation grade, which I, personally, don't agree with, as I showed in the chapter above. However, the terrible growth rating draws attention, and I will discuss this in depth in the risks chapter, but first let's check what the company's latest results have been like.Latest Earnings ResultsAlibaba released good results in 1Q24, even beating market revenue estimates, as we can see in the table below. Furthermore, Alibaba also repurchased $3.1 billion in common shares, another sign of how cheap the company's shares are, corroborating my recommendation to buy the shares.Forecasts (Investing)However, during the earnings conference call, when asked about the growth in customer management revenue, management advised analysts to be realistic with their projections due to the complex macroeconomic environment, and this brings me to the chapter on risks to the thesis.The Big Risk For The ThesisThe big risk to the thesis is geopolitical issues that encompass the relationship between the United States, China, Taiwan and the upcoming presidential election.It is important to remember that in his first term, Trump stated that he would honor the one-China policy, however what came after was a major Trade War with the Chinese.In March 2018, tariffs were announced on Chinese imports worth $50 billion, and in July, the war intensified with new tariffs worth $34 billion, hitting Alibaba's business hard.In 2019, Trump increased tariffs from 10% to 25% on $200 billion in Chinese products, and what has happened to Alibaba's share price since then?Price (Seeking Alpha)We saw the price drop from $300 to less than $100 per share. Therefore, with Trump's return in a scenario of even greater geopolitical instability than in his first term, there is a high chance of great volatility in stocks. Now, I will present other risks.Other Potential Threats To The Bullish ThesisCombined with the complex macroeconomic environment, even mentioned by the company's management, competition is increasingly aggressive. The company faces competition from Pinduoduo, with a business model focused on group purchases, and Douyin, focused on content and e-commerce.Although the Chinese market is gigantic, it is starting to mature. Therefore, the customer acquisition cost for Alibaba has increased over time, although it is still 17% lower than Pinduoduo.Finally, there is a perception that Alibaba and its competitors' products are of low quality, which makes it difficult to achieve greater penetration in markets with high purchasing power, such as America and Europe. The risks to the thesis are diverse, and investors should be cautious when analyzing the company.The Bottom LineDespite the possibility of Trump's re-election, the company has taken several initiatives to diversify types of business and geographies, diversifying its business internationally and remaining competitive.The company continues to be the leader in its market, and although China sees maturity in its market, this does not match the company's attractive valuation and margins.Based on this analysis, I recommend buying Alibaba shares. Current prices suggest a dire scenario for the company compared to its peers. In my view, it has a great risk-return ratio.","news_type":1},"isVote":1,"tweetType":1,"viewCount":283,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":264836900995128,"gmtCreate":1705681627486,"gmtModify":1705681630609,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a> Time to buy","listText":"<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a> Time to buy","text":"$Tesla Motors(TSLA)$ Time to buy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/264836900995128","isVote":1,"tweetType":1,"viewCount":500,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":262983822667856,"gmtCreate":1705239197551,"gmtModify":1705239201791,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"Microsoft will take over.","listText":"Microsoft will take over.","text":"Microsoft will take over.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/262983822667856","isVote":1,"tweetType":1,"viewCount":392,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":254973175623736,"gmtCreate":1703262910895,"gmtModify":1703263287603,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/TIGR\">$Tiger Brokers(TIGR)$&nbsp;</a>Wishing everybody a joyous Christmas filled with love, warmth, and cherished moments. May the festive season bring peace and happiness to you and your loved ones.","listText":"<a href=\"https://ttm.financial/S/TIGR\">$Tiger Brokers(TIGR)$&nbsp;</a>Wishing everybody a joyous Christmas filled with love, warmth, and cherished moments. May the festive season bring peace and happiness to you and your loved ones.","text":"$Tiger Brokers(TIGR)$ Wishing everybody a joyous Christmas filled with love, warmth, and cherished moments. May the festive season bring peace and happiness to you and your loved ones.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/254973175623736","isVote":1,"tweetType":1,"viewCount":344,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":251313219182752,"gmtCreate":1702393157064,"gmtModify":1702393160770,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/SE\">$Sea Ltd(SE)$&nbsp;</a>Come on... what's the point to invest this company still losing money every year until today?&nbsp;","listText":"<a href=\"https://ttm.financial/S/SE\">$Sea Ltd(SE)$&nbsp;</a>Come on... what's the point to invest this company still losing money every year until today?&nbsp;","text":"$Sea Ltd(SE)$ Come on... what's the point to invest this company still losing money every year until today?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/251313219182752","isVote":1,"tweetType":1,"viewCount":486,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":247191889842472,"gmtCreate":1701387508572,"gmtModify":1701395767068,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a>Tesla will bullish because Cybertruck design is so special and bold, only Tesla make it.","listText":"<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a>Tesla will bullish because Cybertruck design is so special and bold, only Tesla make it.","text":"$Tesla Motors(TSLA)$ Tesla will bullish because Cybertruck design is so special and bold, only Tesla make it.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/247191889842472","isVote":1,"tweetType":1,"viewCount":260,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":183985699123216,"gmtCreate":1685939997969,"gmtModify":1685943000012,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"Good article I enjoyed reading about it.","listText":"Good article I enjoyed reading about it.","text":"Good article I enjoyed reading about it.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/183985699123216","repostId":"2340205146","repostType":2,"repost":{"id":"2340205146","kind":"highlight","pubTimestamp":1685922175,"share":"https://ttm.financial/m/news/2340205146?lang=&edition=fundamental","pubTime":"2023-06-05 07:42","market":"us","language":"en","title":"1 Growth Stock Down 75% to Buy Right Now","url":"https://stock-news.laohu8.com/highlight/detail?id=2340205146","media":"Motley Fool","summary":"China's dominant e-commerce company has some favorable winds at its back now.","content":"<html><head></head><body><p>When <a href=\"https://laohu8.com/S/BABA\">Alibaba</a> reported results for its fiscal 2023 fourth quarter (ended March 31), they were a bit of a mixed bag. Revenue of $30.3 billion missed Wall Street expectations, but adjusted diluted earnings per American depository share of $1.56 beat analyst forecasts.</p><p>Nonetheless, a key theme on shareholders&#39; minds continues to be the macroeconomic backdrop. As of this writing, Alibaba shares are down a jaw-dropping 75% from their peak, which was set in October 2020.</p><p>But the China-based company is in the midst of some transformative steps to unlock shareholder value. While it&#39;s been beaten down, this growth stock is one that investors should consider buying now. </p><h2>China&#39;s economic reopening </h2><p>Like <strong>Amazon</strong>, which many readers might be more familiar with, Alibaba&#39;s bread-and-butter business line is e-commerce. <a href=\"https://laohu8.com/S/BPOPN\">Popular</a> sites include Taobao and Tmall in China and Lazada in Southeast Asia. During the most recent fiscal quarter, 74% of overall company revenue was from these shopping segments, called China Commerce and International Commerce. This is clearly very important to Alibaba&#39;s operations. </p><p>The pandemic, while generally a boon for online shopping, resulted in a headwind for China, which had to deal with ongoing lockdowns. Now that the economy is reopening, consumer sentiment may be turning positive. This could turn into a major tailwind for Alibaba&#39;s business as Taobao and Tmall together represent the world&#39;s largest digital retail platform by gross merchandise volume, according to management. </p><p>&#34;In the past few months, we have noticed a gradual recovery in China consumption, but consumer confidence and spending power still need further momentum,&#34; CEO Daniel Zhang mentioned on the Q4 2023 earnings call. This only presents investors with upside as things hopefully normalize, placing Alibaba in a position to benefit. </p><h2>Unlocking shareholder value </h2><p>Stealing investor attention recently was news that Alibaba plans to undergo a huge corporate reorganization, splitting into six separate business lines. The objective is to allow each segment to operate freely and independently, which can lead to better decision-making, faster responses to market changes, and the ability to raise capital on their own. Plus, it can appease regulatory authorities who may think Alibaba is too large right now. </p><p>Of all of these strategic moves meant to reorganize the business, perhaps the most notable is the spinoff of the cloud unit, called the Cloud Intelligence Group. According to Statista, Alibaba is the biggest cloud infrastructure service provider in China, and the fourth largest in the world by revenue. The segment saw sales drop 2% versus the year-ago period, but there&#39;s no doubt that investors would love to have a direct ownership in the leading pure-play cloud company in China. </p><p>Existing Alibaba shareholders would get a piece of the new cloud standalone entity, which could be a nice addition to anyone&#39;s portfolio. Otherwise, the shares could be sold for cash if investors aren&#39;t interested in holding. </p><h2>Lots of free cash flow </h2><p>The Federal Reserve and other major central banks across the world have implemented aggressive monetary tightening policies with the stated goal of bringing inflation under control. This has raised the cost of capital for companies, hurting some much more than others. In economic times like now, when many are expecting a recession to happen, investors might be better off seeking financially sound businesses. </p><p>Alibaba fits this description. In the last fiscal year, the tech giant produced $25 billion of free cash flow (FCF), up 74% year over year. And as of March 31, the company had about $76 billion combined of cash, cash equivalents, and short-term investments. When compared to the $23 billion of bank borrowings and unsecured senior notes, it&#39;s evident that Alibaba has a strong balance sheet. </p><p>This favorable financial position has allowed management to repurchase a lot of shares. In fact, Alibaba spent $10.9 billion on stock buybacks last fiscal year, equal to over 5% of the current market cap (as of May 31). This benefits existing shareholders by boosting earnings per share, and it&#39;s a sign that the leadership team thinks the stock is undervalued. </p><p>With a robust stock buyback program, sizable free cash flow, ongoing economic reopening, and major cloud spinoff, Alibaba presents plenty of compelling reasons now for investors to consider adding the stock to their portfolios.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>1 Growth Stock Down 75% to Buy Right Now</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n1 Growth Stock Down 75% to Buy Right Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-06-05 07:42 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2023/06/04/1-growth-stock-down-75-to-buy-right-now/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When Alibaba reported results for its fiscal 2023 fourth quarter (ended March 31), they were a bit of a mixed bag. Revenue of $30.3 billion missed Wall Street expectations, but adjusted diluted ...</p>\n\n<a href=\"https://www.fool.com/investing/2023/06/04/1-growth-stock-down-75-to-buy-right-now/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W"},"source_url":"https://www.fool.com/investing/2023/06/04/1-growth-stock-down-75-to-buy-right-now/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2340205146","content_text":"When Alibaba reported results for its fiscal 2023 fourth quarter (ended March 31), they were a bit of a mixed bag. Revenue of $30.3 billion missed Wall Street expectations, but adjusted diluted earnings per American depository share of $1.56 beat analyst forecasts.Nonetheless, a key theme on shareholders' minds continues to be the macroeconomic backdrop. As of this writing, Alibaba shares are down a jaw-dropping 75% from their peak, which was set in October 2020.But the China-based company is in the midst of some transformative steps to unlock shareholder value. While it's been beaten down, this growth stock is one that investors should consider buying now. China's economic reopening Like Amazon, which many readers might be more familiar with, Alibaba's bread-and-butter business line is e-commerce. Popular sites include Taobao and Tmall in China and Lazada in Southeast Asia. During the most recent fiscal quarter, 74% of overall company revenue was from these shopping segments, called China Commerce and International Commerce. This is clearly very important to Alibaba's operations. The pandemic, while generally a boon for online shopping, resulted in a headwind for China, which had to deal with ongoing lockdowns. Now that the economy is reopening, consumer sentiment may be turning positive. This could turn into a major tailwind for Alibaba's business as Taobao and Tmall together represent the world's largest digital retail platform by gross merchandise volume, according to management. \"In the past few months, we have noticed a gradual recovery in China consumption, but consumer confidence and spending power still need further momentum,\" CEO Daniel Zhang mentioned on the Q4 2023 earnings call. This only presents investors with upside as things hopefully normalize, placing Alibaba in a position to benefit. Unlocking shareholder value Stealing investor attention recently was news that Alibaba plans to undergo a huge corporate reorganization, splitting into six separate business lines. The objective is to allow each segment to operate freely and independently, which can lead to better decision-making, faster responses to market changes, and the ability to raise capital on their own. Plus, it can appease regulatory authorities who may think Alibaba is too large right now. Of all of these strategic moves meant to reorganize the business, perhaps the most notable is the spinoff of the cloud unit, called the Cloud Intelligence Group. According to Statista, Alibaba is the biggest cloud infrastructure service provider in China, and the fourth largest in the world by revenue. The segment saw sales drop 2% versus the year-ago period, but there's no doubt that investors would love to have a direct ownership in the leading pure-play cloud company in China. Existing Alibaba shareholders would get a piece of the new cloud standalone entity, which could be a nice addition to anyone's portfolio. Otherwise, the shares could be sold for cash if investors aren't interested in holding. Lots of free cash flow The Federal Reserve and other major central banks across the world have implemented aggressive monetary tightening policies with the stated goal of bringing inflation under control. This has raised the cost of capital for companies, hurting some much more than others. In economic times like now, when many are expecting a recession to happen, investors might be better off seeking financially sound businesses. Alibaba fits this description. In the last fiscal year, the tech giant produced $25 billion of free cash flow (FCF), up 74% year over year. And as of March 31, the company had about $76 billion combined of cash, cash equivalents, and short-term investments. When compared to the $23 billion of bank borrowings and unsecured senior notes, it's evident that Alibaba has a strong balance sheet. This favorable financial position has allowed management to repurchase a lot of shares. In fact, Alibaba spent $10.9 billion on stock buybacks last fiscal year, equal to over 5% of the current market cap (as of May 31). This benefits existing shareholders by boosting earnings per share, and it's a sign that the leadership team thinks the stock is undervalued. With a robust stock buyback program, sizable free cash flow, ongoing economic reopening, and major cloud spinoff, Alibaba presents plenty of compelling reasons now for investors to consider adding the stock to their portfolios.","news_type":1},"isVote":1,"tweetType":1,"viewCount":533,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9970752111,"gmtCreate":1685028732633,"gmtModify":1685036891986,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"I just sold Nvidia stock made decent return after a long wait,&nbsp;awesome!","listText":"I just sold Nvidia stock made decent return after a long wait,&nbsp;awesome!","text":"I just sold Nvidia stock made decent return after a long wait, awesome!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/9970752111","repostId":"1186201351","repostType":2,"repost":{"id":"1186201351","kind":"news","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1685028307,"share":"https://ttm.financial/m/news/1186201351?lang=&edition=fundamental","pubTime":"2023-05-25 23:25","market":"us","language":"en","title":"Semiconductor Shares Extended Gains in Morning Trading, With Nvidia Soaring 28%","url":"https://stock-news.laohu8.com/highlight/detail?id=1186201351","media":"Tiger Newspress","summary":"Nvidia Corp. results showing that customers are binging on chips used in artificial intelligence com","content":"<html><head></head><body><p><a href=\"https://laohu8.com/S/NVDA\">Nvidia Corp.</a> results showing that customers are binging on chips used in artificial intelligence computing sent a complex of stocks tied to the burgeoning technology soaring. Nvidia shares rallied 28% in morning trading.</p><p>Other semiconductor makers also jumped. <a href=\"https://laohu8.com/S/TSM\">TSMC</a> rose nearly 13%; <a href=\"https://laohu8.com/S/AMD\">AMD</a> rose nearly 10%; Applied Materials, <a href=\"https://laohu8.com/S/ASML\">ASML</a> rose over 5%; <a href=\"https://laohu8.com/S/AVGO\">Broadcon</a>, Micron rose over 3%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d36b58c6b684db5b5fb3b19e39fd23fd\" tg-width=\"472\" tg-height=\"648\"/></p><p>Nvidia forecast current-quarter revenue of $11 billion, plus or minus 2%. Analysts polled by Refinitiv are expecting revenue of $7.15 billion.</p><p>&#34;Given the generative AI gold rush taking place, this should fuel demand for Nvidia&#39;s chips for the remainder of the year,&#34; said Edward Jones analyst Logan Purk.</p><p>Nvidia did not provide a full-year forecast on Wednesday, but Chief Financial Officer Colette Kress said the company had procured &#34;substantially higher supply&#34; for the second half of the year.</p><p>Adjusted revenue for the quarter ended April 30 was $7.19 billion. Analysts polled by Refinitiv were expecting revenue of $6.52 billion. The company&#39;s data center chip sales hit $4.28 billion, beating analyst estimates of $3.89 billion, according to segment data from FactSet.</p><p>Gaming chip revenue beat Wall Street expectations at $2.24 billion versus estimates of $1.97 billion, according to FactSet data.</p><p>Net income rose to $2.04 billion, or 82 cents per share, from $1.62 billion, or 64 cents per share, a year earlier. Excluding items, the company earned $1.09 per share in the first quarter, beating estimates of 92 cents.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Semiconductor Shares Extended Gains in Morning Trading, With Nvidia Soaring 28%</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSemiconductor Shares Extended Gains in Morning Trading, With Nvidia Soaring 28%\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2023-05-25 23:25</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p><a href=\"https://laohu8.com/S/NVDA\">Nvidia Corp.</a> results showing that customers are binging on chips used in artificial intelligence computing sent a complex of stocks tied to the burgeoning technology soaring. Nvidia shares rallied 28% in morning trading.</p><p>Other semiconductor makers also jumped. <a href=\"https://laohu8.com/S/TSM\">TSMC</a> rose nearly 13%; <a href=\"https://laohu8.com/S/AMD\">AMD</a> rose nearly 10%; Applied Materials, <a href=\"https://laohu8.com/S/ASML\">ASML</a> rose over 5%; <a href=\"https://laohu8.com/S/AVGO\">Broadcon</a>, Micron rose over 3%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d36b58c6b684db5b5fb3b19e39fd23fd\" tg-width=\"472\" tg-height=\"648\"/></p><p>Nvidia forecast current-quarter revenue of $11 billion, plus or minus 2%. Analysts polled by Refinitiv are expecting revenue of $7.15 billion.</p><p>&#34;Given the generative AI gold rush taking place, this should fuel demand for Nvidia&#39;s chips for the remainder of the year,&#34; said Edward Jones analyst Logan Purk.</p><p>Nvidia did not provide a full-year forecast on Wednesday, but Chief Financial Officer Colette Kress said the company had procured &#34;substantially higher supply&#34; for the second half of the year.</p><p>Adjusted revenue for the quarter ended April 30 was $7.19 billion. Analysts polled by Refinitiv were expecting revenue of $6.52 billion. The company&#39;s data center chip sales hit $4.28 billion, beating analyst estimates of $3.89 billion, according to segment data from FactSet.</p><p>Gaming chip revenue beat Wall Street expectations at $2.24 billion versus estimates of $1.97 billion, according to FactSet data.</p><p>Net income rose to $2.04 billion, or 82 cents per share, from $1.62 billion, or 64 cents per share, a year earlier. Excluding items, the company earned $1.09 per share in the first quarter, beating estimates of 92 cents.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMD":"美国超微公司","AVGO":"博通","MU":"美光科技","TSM":"台积电","AMAT":"应用材料","NVDA":"英伟达","ASML":"阿斯麦"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1186201351","content_text":"Nvidia Corp. results showing that customers are binging on chips used in artificial intelligence computing sent a complex of stocks tied to the burgeoning technology soaring. Nvidia shares rallied 28% in morning trading.Other semiconductor makers also jumped. TSMC rose nearly 13%; AMD rose nearly 10%; Applied Materials, ASML rose over 5%; Broadcon, Micron rose over 3%.Nvidia forecast current-quarter revenue of $11 billion, plus or minus 2%. Analysts polled by Refinitiv are expecting revenue of $7.15 billion.\"Given the generative AI gold rush taking place, this should fuel demand for Nvidia's chips for the remainder of the year,\" said Edward Jones analyst Logan Purk.Nvidia did not provide a full-year forecast on Wednesday, but Chief Financial Officer Colette Kress said the company had procured \"substantially higher supply\" for the second half of the year.Adjusted revenue for the quarter ended April 30 was $7.19 billion. Analysts polled by Refinitiv were expecting revenue of $6.52 billion. The company's data center chip sales hit $4.28 billion, beating analyst estimates of $3.89 billion, according to segment data from FactSet.Gaming chip revenue beat Wall Street expectations at $2.24 billion versus estimates of $1.97 billion, according to FactSet data.Net income rose to $2.04 billion, or 82 cents per share, from $1.62 billion, or 64 cents per share, a year earlier. Excluding items, the company earned $1.09 per share in the first quarter, beating estimates of 92 cents.","news_type":1},"isVote":1,"tweetType":1,"viewCount":574,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"4142151918517882","authorId":"4142151918517882","name":"bryan831","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":5,"crmLevelSwitch":1,"idStr":"4142151918517882","authorIdStr":"4142151918517882"},"content":"haha you'll miss out on the next run up then. they have 2 quarters of 70% margin, most likely will reinvest into new facilities or R&D, gonna miss out on those gains in the coming years.","text":"haha you'll miss out on the next run up then. they have 2 quarters of 70% margin, most likely will reinvest into new facilities or R&D, gonna miss out on those gains in the coming years.","html":"haha you'll miss out on the next run up then. they have 2 quarters of 70% margin, most likely will reinvest into new facilities or R&D, gonna miss out on those gains in the coming years."}],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":9970752111,"gmtCreate":1685028732633,"gmtModify":1685036891986,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"I just sold Nvidia stock made decent return after a long wait,&nbsp;awesome!","listText":"I just sold Nvidia stock made decent return after a long wait,&nbsp;awesome!","text":"I just sold Nvidia stock made decent return after a long wait, awesome!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/9970752111","repostId":"1186201351","repostType":2,"isVote":1,"tweetType":1,"viewCount":574,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"4142151918517882","authorId":"4142151918517882","name":"bryan831","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":5,"crmLevelSwitch":1,"idStr":"4142151918517882","authorIdStr":"4142151918517882"},"content":"haha you'll miss out on the next run up then. they have 2 quarters of 70% margin, most likely will reinvest into new facilities or R&D, gonna miss out on those gains in the coming years.","text":"haha you'll miss out on the next run up then. they have 2 quarters of 70% margin, most likely will reinvest into new facilities or R&D, gonna miss out on those gains in the coming years.","html":"haha you'll miss out on the next run up then. they have 2 quarters of 70% margin, most likely will reinvest into new facilities or R&D, gonna miss out on those gains in the coming years."}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":331398810468424,"gmtCreate":1721915607215,"gmtModify":1721915610796,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"No way! This is shitty stock!","listText":"No way! This is shitty stock!","text":"No way! This is shitty stock!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/331398810468424","repostId":"2454865436","repostType":2,"repost":{"id":"2454865436","kind":"highlight","pubTimestamp":1721876447,"share":"https://ttm.financial/m/news/2454865436?lang=&edition=fundamental","pubTime":"2024-07-25 11:00","market":"us","language":"en","title":"Alibaba: Too Cheap To Ignore","url":"https://stock-news.laohu8.com/highlight/detail?id=2454865436","media":"Seeking Alpha","summary":"Alibaba has followed the growth of China, which is now beginning to see the maturation of its e-commerce.However, the company has excellent margins and satisfactory results.P/E ratio below historical ","content":"<html><head></head><body><ul style=\"\"><li><p>Alibaba has followed the growth of China, which is now beginning to see the maturation of its e-commerce.</p></li><li><p>However, the company has excellent margins and satisfactory results.</p></li><li><p>P/E ratio below historical figures makes Alibaba a compelling investment opportunity.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/84b6aeab08dc480ef3a214462aadfcfd\" alt=\"Robert Way\" title=\"Robert Way\" tg-width=\"750\" tg-height=\"500\"/><span>Robert Way</span></p><h2 id=\"id_3898549945\">Investment Thesis</h2><p>I recommend buying Alibaba Group (NYSE:BABA) (OTCPK:BABAF) shares. China continues to be the leader in global e-commerce, and the Chinese company Alibaba is one of the main players in this market.</p><p>But despite its excellent margins, the valuation is extremely discounted. This is due to geopolitical risks, but in my opinion they are being overestimated given the company&#39;s business and geographic diversification.</p><h2 id=\"id_2644318502\">Introduction</h2><p>Projections indicate that the e-commerce market should reach $5.14 trillion by the end of 2024, and is expected to show a CAGR of 15% between 2019 and 2024. China remains the leader in this market, representing more than 50% of all e-commerce sales in the world.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7e75bd64727935aae2614deb76cf7def\" alt=\"E-Commerce Market (Statista)\" title=\"E-Commerce Market (Statista)\" tg-width=\"640\" tg-height=\"559\"/><span>E-Commerce Market (Statista)</span></p><p>The market is forecast to reach $3.3 trillion in 2025, with Alibaba being the pioneering and most relevant company in e-commerce to date, which supports my recommendation to buy. Let&#39;s learn a little more about the history of Alibaba and its business model below.</p><h2 id=\"id_425806553\">History And Business Model</h2><p>Alibaba was founded in 1999 by Jack Ma, and then I brought up the company&#39;s timeline.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/9e75126f0f15e7900aa64afeeac4e54a\" alt=\"EcomCrew (Timeline)\" title=\"EcomCrew (Timeline)\" tg-width=\"640\" tg-height=\"422\"/><span>EcomCrew (Timeline)</span></p><p>The business model is similar to that of Amazon (NASDAQ:AMZN), however, the company divides its business into several subsidiaries, as we will see below in the breakdown of its revenues.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6f876d65c2f8b851f2aa57ffbd4b579a\" alt=\"Alibaba Revenue Breakdown (Investopedia)\" title=\"Alibaba Revenue Breakdown (Investopedia)\" tg-width=\"578\" tg-height=\"349\"/><span>Alibaba Revenue Breakdown (Investopedia)</span></p><p>Let’s better understand each segment of the business:</p><h3 id=\"id_3379697306\">Taobao and Tmall Group</h3><p>Taobao is a platform whose business model is based on selling advertising. Sellers pay for advertisements to increase the visibility of their products. Tmall is B2C, that is, aimed at large brands, and monetizes by charging commissions per sale. These segments represent around 43% of the company&#39;s revenue and have an operating margin of 46%.</p><h3 id=\"id_4169506896\">Cloud Intelligence Group</h3><p>Alibaba Cloud is the cloud computing segment, where the company offers data storage, big data, and AI solutions in a subscription-based compensation model. This segment corresponds to 10% of the company&#39;s revenue and has an operating margin of 8.4%.</p><h3 id=\"id_1373801151\">International and Digital Commerce Group</h3><p>In this segment, we have AliExpress, Trendyol, Lazada and Alibaba. AliExpress is a B2C platform, that is, it allows consumers to buy products from local manufacturers, and the platform is remunerated with commissions, advertising, logistics and support. Alibaba is similar to AliExpress, but it is B2B.</p><p>Trendyol and Lazada represent the company&#39;s international expansion. Lazada focuses on Southeast Asia, being one of the most relevant e-commerce in the region, while Trendyol has a greater focus on Turkey. The international segments represent 10% of revenue and have an operational margin of -11%.</p><h3 id=\"id_3048247864\">Cainiao</h3><p>Finally, among the most relevant businesses is Cainiao, which has 10% relevance to the company&#39;s revenues and has an operating margin of 3.3%. This segment is responsible for storage, delivery, and transport services in more than 200 countries.</p><p>In my opinion, this diversification of businesses and geographies strengthens Alibaba&#39;s business model, corroborating my purchase recommendation. However, I believe it is more viable to compare Alibaba with its global competitors, Amazon, <a href=\"https://laohu8.com/S/MELI\">MercadoLibre</a> (NYSE:MELI) and Sea (NYSE:SE). Therefore, I will do a comparative analysis of the fundamentals of major global retailers below.</p><h2 id=\"id_1660849932\">Alibaba Fundamentals</h2><p>Below, we have a financial analysis of Alibaba against its competitors around the world.</p><table style=\"border-collapse:collapse;\"><tbody><tr><td style=\"text-align:left;\"><p>Ticker</p></td><td style=\"text-align:left;\"><p>BABA</p></td><td style=\"text-align:left;\"><p>AMZN</p></td><td style=\"text-align:left;\"><p>SE</p></td><td style=\"text-align:left;\"><p>MELI</p></td></tr><tr><td style=\"text-align:left;\"><p>Country</p></td><td style=\"text-align:left;\"><p>China</p></td><td style=\"text-align:left;\"><p>USA</p></td><td style=\"text-align:left;\"><p>Singapore</p></td><td style=\"text-align:left;\"><p>Argentina</p></td></tr><tr><td style=\"text-align:left;\"><p>Market Cap</p></td><td style=\"text-align:left;\"><p>$185B</p></td><td style=\"text-align:left;\"><p>$2T</p></td><td style=\"text-align:left;\"><p>$41B</p></td><td style=\"text-align:left;\"><p>$88B</p></td></tr><tr><td style=\"text-align:left;\"><p>Revenue</p></td><td style=\"text-align:left;\"><p>$30B</p></td><td style=\"text-align:left;\"><p>$143B</p></td><td style=\"text-align:left;\"><p>$3.7B</p></td><td style=\"text-align:left;\"><p>$4.3</p></td></tr><tr><td style=\"text-align:left;\"><p>Revenue Growth 5 Years [CAGR]</p></td><td style=\"text-align:left;\"><p>20%</p></td><td style=\"text-align:left;\"><p>20%</p></td><td style=\"text-align:left;\"><p>68%</p></td><td style=\"text-align:left;\"><p>58%</p></td></tr><tr><td style=\"text-align:left;\"><p>EBITDA Margin</p></td><td style=\"text-align:left;\"><p>19%</p></td><td style=\"text-align:left;\"><p>16%</p></td><td style=\"text-align:left;\"><p>4%</p></td><td style=\"text-align:left;\"><p>18%</p></td></tr><tr><td style=\"text-align:left;\"><p>Net Income Margin</p></td><td style=\"text-align:left;\"><p>8.5%</p></td><td style=\"text-align:left;\"><p>6.3%</p></td><td style=\"text-align:left;\"><p>0.3%</p></td><td style=\"text-align:left;\"><p>7.2%</p></td></tr><tr><td style=\"text-align:left;\"><p>ROE</p></td><td style=\"text-align:left;\"><p>6.3%</p></td><td style=\"text-align:left;\"><p>20%</p></td><td style=\"text-align:left;\"><p>0.8%</p></td><td style=\"text-align:left;\"><p>41%</p></td></tr></tbody></table><p>Amazon and Alibaba have had equal revenue growth over the last 5 years; however, the magnitude of Amazon&#39;s revenue is much greater, which shows that the American company has been dealing better with the &#34;pains&#34; of growth.</p><p>However, I highlight Alibaba&#39;s extremely attractive level of EBITDA and net margin against its competitors. This shows that the company did not give up profitability to grow and corroborates my investment thesis. But is this in the price?</p><h2 id=\"id_4085845064\">Valuation Is Extremely Attractive</h2><p>To carry out the company&#39;s valuation, I will use the comparative valuation method with P/E and PEG.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/0c10168418a94ee9e48a5abfb328209e\" alt=\"P/E and PEG (Seeking Alpha)\" title=\"P/E and PEG (Seeking Alpha)\" tg-width=\"418\" tg-height=\"185\"/><span>P/E and PEG (Seeking Alpha)</span></p><p>The company presents a relevant discount to peers in both P/E and PEG. The companies&#39; average P/E multiple is 38x, well above Alibaba. Therefore, we will base ourselves on the PEG, which considers the company&#39;s growth.</p><p>In this case, we have an average of 1.33x PEG, which implies a sensible upside potential of 37% for the shares, corroborating my recommendation to buy. Now, let&#39;s see what Seeking Alpha&#39;s Quant tools tell us.</p><h2 id=\"id_1952384929\">Alibaba According To Quant Rating And Factor Grades</h2><p>Below we have the grades, where the company earns an excellent grade only in profitability.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3e4c59a7de1cb41b8cdddca8c1f6f428\" alt=\"Quant Rating And Factor Grades (Seeking Alpha)\" title=\"Quant Rating And Factor Grades (Seeking Alpha)\" tg-width=\"640\" tg-height=\"183\"/><span>Quant Rating And Factor Grades (Seeking Alpha)</span></p><p>The Quant Rating recommendation is to hold the shares. This is due to the valuation grade, which I, personally, don&#39;t agree with, as I showed in the chapter above. However, the terrible growth rating draws attention, and I will discuss this in depth in the risks chapter, but first let&#39;s check what the company&#39;s latest results have been like.</p><h2 id=\"id_3561014253\">Latest Earnings Results</h2><p>Alibaba released good results in 1Q24, even beating market revenue estimates, as we can see in the table below. Furthermore, Alibaba also repurchased $3.1 billion in common shares, another sign of how cheap the company&#39;s shares are, corroborating my recommendation to buy the shares.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/443c3ce5ecdff24dd6b784a2f49a1f93\" alt=\"Forecasts (Investing)\" title=\"Forecasts (Investing)\" tg-width=\"640\" tg-height=\"62\"/><span>Forecasts (Investing)</span></p><p>However, during the earnings conference call, when asked about the growth in customer management revenue, management advised analysts to be realistic with their projections due to the complex macroeconomic environment, and this brings me to the chapter on risks to the thesis.</p><h2 id=\"id_1139708273\">The Big Risk For The Thesis</h2><p>The big risk to the thesis is geopolitical issues that encompass the relationship between the United States, China, Taiwan and the upcoming presidential election.</p><p>It is important to remember that in his first term, Trump stated that he would honor the one-China policy, however what came after was a major Trade War with the Chinese.</p><p>In March 2018, tariffs were announced on Chinese imports worth $50 billion, and in July, the war intensified with new tariffs worth $34 billion, hitting Alibaba&#39;s business hard.</p><p>In 2019, Trump increased tariffs from 10% to 25% on $200 billion in Chinese products, and what has happened to Alibaba&#39;s share price since then?</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2c65e96adcf903504bb2c2a00a7c1cc5\" alt=\"Price (Seeking Alpha)\" title=\"Price (Seeking Alpha)\" tg-width=\"640\" tg-height=\"211\"/><span>Price (Seeking Alpha)</span></p><p>We saw the price drop from $300 to less than $100 per share. Therefore, with Trump&#39;s return in a scenario of even greater geopolitical instability than in his first term, there is a high chance of great volatility in stocks. Now, I will present other risks.</p><h2 id=\"id_4292157221\">Other Potential Threats To The Bullish Thesis</h2><p>Combined with the complex macroeconomic environment, even mentioned by the company&#39;s management, competition is increasingly aggressive. The company faces competition from Pinduoduo, with a business model focused on group purchases, and Douyin, focused on content and e-commerce.</p><p>Although the Chinese market is gigantic, it is starting to mature. Therefore, the customer acquisition cost for Alibaba has increased over time, although it is still 17% lower than Pinduoduo.</p><p>Finally, there is a perception that Alibaba and its competitors&#39; products are of low quality, which makes it difficult to achieve greater penetration in markets with high purchasing power, such as America and Europe. The risks to the thesis are diverse, and investors should be cautious when analyzing the company.</p><h2 id=\"id_1349122520\">The Bottom Line</h2><p>Despite the possibility of Trump&#39;s re-election, the company has taken several initiatives to diversify types of business and geographies, diversifying its business internationally and remaining competitive.</p><p>The company continues to be the leader in its market, and although China sees maturity in its market, this does not match the company&#39;s attractive valuation and margins.</p><p>Based on this analysis, I recommend buying Alibaba shares. Current prices suggest a dire scenario for the company compared to its peers. In my view, it has a great risk-return ratio.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba: Too Cheap To Ignore</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba: Too Cheap To Ignore\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-25 11:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4706362-alibaba-too-cheap-to-ignore><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Alibaba has followed the growth of China, which is now beginning to see the maturation of its e-commerce.However, the company has excellent margins and satisfactory results.P/E ratio below historical ...</p>\n\n<a href=\"https://seekingalpha.com/article/4706362-alibaba-too-cheap-to-ignore\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0080751232.USD":"富达环球多元动力基金A","SG9999014492.USD":"NIKKO AM ASEAN EQUITY \"A\" (USD) ACC","BK4579":"人工智能","LU0880133367.SGD":"UBS (LUX) EQUITY FUND CHINA OPPORTUNITY USD \"P\" (SGD) ACC","09988":"阿里巴巴-W","BK4532":"文艺复兴科技持仓","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","BK1502":"双十一","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","LU0229945570.USD":"TEMPLETON BRIC \"A\" (USD) ACC","SGXZ58947870.SGD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (SGDHDG) INC","BK1584":"蚂蚁金服概念","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","LU0307460666.USD":"EASTSPRING INVESTMENTS CHINA EQUITY \"A\" ACC","LU0251143458.SGD":"Fidelity Emerging Markets A-SGD","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","BK4085":"互动家庭娱乐","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","BK4527":"明星科技股","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4548":"巴美列捷福持仓","BK4524":"宅经济概念","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","LU0370786039.SGD":"Fidelity Greater China A-SGD","BK1142":"互联网与直销零售","BK4581":"高盛持仓","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","BK1501":"阿里概念股","LU0261945553.USD":"FIDELITY ASEAN \"A\" ACC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0314109678.HKD":"MANULIFE GF DRAGON GROWTH \"AA\" (HKD) INC","BK4526":"热门中概股","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","LU0196878994.USD":"MANULIFE GF CHINA VALUE \"AA\" (USD) INC","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","LU0228367735.SGD":"Eastspring Investments - Asian Equity Fund AS SGD","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE00B19Z8W00.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"A\" INC","BABA":"阿里巴巴","LU0140636845.USD":"施罗德大中华区股票A Acc"},"source_url":"https://seekingalpha.com/article/4706362-alibaba-too-cheap-to-ignore","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2454865436","content_text":"Alibaba has followed the growth of China, which is now beginning to see the maturation of its e-commerce.However, the company has excellent margins and satisfactory results.P/E ratio below historical figures makes Alibaba a compelling investment opportunity.Robert WayInvestment ThesisI recommend buying Alibaba Group (NYSE:BABA) (OTCPK:BABAF) shares. China continues to be the leader in global e-commerce, and the Chinese company Alibaba is one of the main players in this market.But despite its excellent margins, the valuation is extremely discounted. This is due to geopolitical risks, but in my opinion they are being overestimated given the company's business and geographic diversification.IntroductionProjections indicate that the e-commerce market should reach $5.14 trillion by the end of 2024, and is expected to show a CAGR of 15% between 2019 and 2024. China remains the leader in this market, representing more than 50% of all e-commerce sales in the world.E-Commerce Market (Statista)The market is forecast to reach $3.3 trillion in 2025, with Alibaba being the pioneering and most relevant company in e-commerce to date, which supports my recommendation to buy. Let's learn a little more about the history of Alibaba and its business model below.History And Business ModelAlibaba was founded in 1999 by Jack Ma, and then I brought up the company's timeline.EcomCrew (Timeline)The business model is similar to that of Amazon (NASDAQ:AMZN), however, the company divides its business into several subsidiaries, as we will see below in the breakdown of its revenues.Alibaba Revenue Breakdown (Investopedia)Let’s better understand each segment of the business:Taobao and Tmall GroupTaobao is a platform whose business model is based on selling advertising. Sellers pay for advertisements to increase the visibility of their products. Tmall is B2C, that is, aimed at large brands, and monetizes by charging commissions per sale. These segments represent around 43% of the company's revenue and have an operating margin of 46%.Cloud Intelligence GroupAlibaba Cloud is the cloud computing segment, where the company offers data storage, big data, and AI solutions in a subscription-based compensation model. This segment corresponds to 10% of the company's revenue and has an operating margin of 8.4%.International and Digital Commerce GroupIn this segment, we have AliExpress, Trendyol, Lazada and Alibaba. AliExpress is a B2C platform, that is, it allows consumers to buy products from local manufacturers, and the platform is remunerated with commissions, advertising, logistics and support. Alibaba is similar to AliExpress, but it is B2B.Trendyol and Lazada represent the company's international expansion. Lazada focuses on Southeast Asia, being one of the most relevant e-commerce in the region, while Trendyol has a greater focus on Turkey. The international segments represent 10% of revenue and have an operational margin of -11%.CainiaoFinally, among the most relevant businesses is Cainiao, which has 10% relevance to the company's revenues and has an operating margin of 3.3%. This segment is responsible for storage, delivery, and transport services in more than 200 countries.In my opinion, this diversification of businesses and geographies strengthens Alibaba's business model, corroborating my purchase recommendation. However, I believe it is more viable to compare Alibaba with its global competitors, Amazon, MercadoLibre (NYSE:MELI) and Sea (NYSE:SE). Therefore, I will do a comparative analysis of the fundamentals of major global retailers below.Alibaba FundamentalsBelow, we have a financial analysis of Alibaba against its competitors around the world.TickerBABAAMZNSEMELICountryChinaUSASingaporeArgentinaMarket Cap$185B$2T$41B$88BRevenue$30B$143B$3.7B$4.3Revenue Growth 5 Years [CAGR]20%20%68%58%EBITDA Margin19%16%4%18%Net Income Margin8.5%6.3%0.3%7.2%ROE6.3%20%0.8%41%Amazon and Alibaba have had equal revenue growth over the last 5 years; however, the magnitude of Amazon's revenue is much greater, which shows that the American company has been dealing better with the \"pains\" of growth.However, I highlight Alibaba's extremely attractive level of EBITDA and net margin against its competitors. This shows that the company did not give up profitability to grow and corroborates my investment thesis. But is this in the price?Valuation Is Extremely AttractiveTo carry out the company's valuation, I will use the comparative valuation method with P/E and PEG.P/E and PEG (Seeking Alpha)The company presents a relevant discount to peers in both P/E and PEG. The companies' average P/E multiple is 38x, well above Alibaba. Therefore, we will base ourselves on the PEG, which considers the company's growth.In this case, we have an average of 1.33x PEG, which implies a sensible upside potential of 37% for the shares, corroborating my recommendation to buy. Now, let's see what Seeking Alpha's Quant tools tell us.Alibaba According To Quant Rating And Factor GradesBelow we have the grades, where the company earns an excellent grade only in profitability.Quant Rating And Factor Grades (Seeking Alpha)The Quant Rating recommendation is to hold the shares. This is due to the valuation grade, which I, personally, don't agree with, as I showed in the chapter above. However, the terrible growth rating draws attention, and I will discuss this in depth in the risks chapter, but first let's check what the company's latest results have been like.Latest Earnings ResultsAlibaba released good results in 1Q24, even beating market revenue estimates, as we can see in the table below. Furthermore, Alibaba also repurchased $3.1 billion in common shares, another sign of how cheap the company's shares are, corroborating my recommendation to buy the shares.Forecasts (Investing)However, during the earnings conference call, when asked about the growth in customer management revenue, management advised analysts to be realistic with their projections due to the complex macroeconomic environment, and this brings me to the chapter on risks to the thesis.The Big Risk For The ThesisThe big risk to the thesis is geopolitical issues that encompass the relationship between the United States, China, Taiwan and the upcoming presidential election.It is important to remember that in his first term, Trump stated that he would honor the one-China policy, however what came after was a major Trade War with the Chinese.In March 2018, tariffs were announced on Chinese imports worth $50 billion, and in July, the war intensified with new tariffs worth $34 billion, hitting Alibaba's business hard.In 2019, Trump increased tariffs from 10% to 25% on $200 billion in Chinese products, and what has happened to Alibaba's share price since then?Price (Seeking Alpha)We saw the price drop from $300 to less than $100 per share. Therefore, with Trump's return in a scenario of even greater geopolitical instability than in his first term, there is a high chance of great volatility in stocks. Now, I will present other risks.Other Potential Threats To The Bullish ThesisCombined with the complex macroeconomic environment, even mentioned by the company's management, competition is increasingly aggressive. The company faces competition from Pinduoduo, with a business model focused on group purchases, and Douyin, focused on content and e-commerce.Although the Chinese market is gigantic, it is starting to mature. Therefore, the customer acquisition cost for Alibaba has increased over time, although it is still 17% lower than Pinduoduo.Finally, there is a perception that Alibaba and its competitors' products are of low quality, which makes it difficult to achieve greater penetration in markets with high purchasing power, such as America and Europe. The risks to the thesis are diverse, and investors should be cautious when analyzing the company.The Bottom LineDespite the possibility of Trump's re-election, the company has taken several initiatives to diversify types of business and geographies, diversifying its business internationally and remaining competitive.The company continues to be the leader in its market, and although China sees maturity in its market, this does not match the company's attractive valuation and margins.Based on this analysis, I recommend buying Alibaba shares. Current prices suggest a dire scenario for the company compared to its peers. In my view, it has a great risk-return ratio.","news_type":1},"isVote":1,"tweetType":1,"viewCount":283,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":183985699123216,"gmtCreate":1685939997969,"gmtModify":1685943000012,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"Good article I enjoyed reading about it.","listText":"Good article I enjoyed reading about it.","text":"Good article I enjoyed reading about it.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/183985699123216","repostId":"2340205146","repostType":2,"isVote":1,"tweetType":1,"viewCount":533,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":264836900995128,"gmtCreate":1705681627486,"gmtModify":1705681630609,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a> Time to buy","listText":"<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a> Time to buy","text":"$Tesla Motors(TSLA)$ Time to buy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/264836900995128","isVote":1,"tweetType":1,"viewCount":500,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":262983822667856,"gmtCreate":1705239197551,"gmtModify":1705239201791,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"Microsoft will take over.","listText":"Microsoft will take over.","text":"Microsoft will take over.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/262983822667856","isVote":1,"tweetType":1,"viewCount":392,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":254973175623736,"gmtCreate":1703262910895,"gmtModify":1703263287603,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/TIGR\">$Tiger Brokers(TIGR)$&nbsp;</a>Wishing everybody a joyous Christmas filled with love, warmth, and cherished moments. May the festive season bring peace and happiness to you and your loved ones.","listText":"<a href=\"https://ttm.financial/S/TIGR\">$Tiger Brokers(TIGR)$&nbsp;</a>Wishing everybody a joyous Christmas filled with love, warmth, and cherished moments. May the festive season bring peace and happiness to you and your loved ones.","text":"$Tiger Brokers(TIGR)$ Wishing everybody a joyous Christmas filled with love, warmth, and cherished moments. May the festive season bring peace and happiness to you and your loved ones.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/254973175623736","isVote":1,"tweetType":1,"viewCount":344,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":251313219182752,"gmtCreate":1702393157064,"gmtModify":1702393160770,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/SE\">$Sea Ltd(SE)$&nbsp;</a>Come on... what's the point to invest this company still losing money every year until today?&nbsp;","listText":"<a href=\"https://ttm.financial/S/SE\">$Sea Ltd(SE)$&nbsp;</a>Come on... what's the point to invest this company still losing money every year until today?&nbsp;","text":"$Sea Ltd(SE)$ Come on... what's the point to invest this company still losing money every year until today?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/251313219182752","isVote":1,"tweetType":1,"viewCount":486,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":247191889842472,"gmtCreate":1701387508572,"gmtModify":1701395767068,"author":{"id":"4094514682190670","authorId":"4094514682190670","name":"Joe W","avatar":"https://community-static.tradeup.com/news/a86c81dcfb7dca9de3066ed1948e505c","crmLevel":5,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4094514682190670","authorIdStr":"4094514682190670"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a>Tesla will bullish because Cybertruck design is so special and bold, only Tesla make it.","listText":"<a href=\"https://ttm.financial/S/TSLA\">$Tesla Motors(TSLA)$&nbsp;</a>Tesla will bullish because Cybertruck design is so special and bold, only Tesla make it.","text":"$Tesla Motors(TSLA)$ Tesla will bullish because Cybertruck design is so special and bold, only Tesla make it.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/247191889842472","isVote":1,"tweetType":1,"viewCount":260,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}