One cannot predicts the future and it is probable there's 14% downside risk to Alibaba from here. Whether Munger is paring the stock now for later accumulation or Masayoshi is selling to beef up his troubling Softbank, these are regular tides in the big ocean. What concerns is will Alibaba float up strongly when eventually the tide rises to a new high? Or it has internal problems or geopolitics that is beyond its control? As I said at the beginning, no one knows. Let the investors decide.
Alibaba Stock: Follow Masayoshi Son, Not Charlie Munger
Delisting of behemoths like Alibaba will hurt US standing as well. SEC restrictive probes is a politically motivated move, not economically. PE and near term revenue growth are a lesser concern for monopolistic cash cows like Alibaba. Only that investors have to hold this stock until the current recessionary sentiment turns brighter.
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