2 Risks Investors Should Know Before Buying Alibaba's Stock

41
33
Favorite

2 Risks Investors Should Know Before Buying Alibaba's Stock

Motley Fool2021-06-16

Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment（33）

JilQ
·2021-06-18
I’m tempted to buy but wary of any possible Chinregulations affecting the company
Reply
Like
Report
EdmundSan
·2021-06-17
I think Alibaba is a good coy for long term
Reply
5
Report
Fold Replies
- JacobieReplying toEdmundSan:
  I'm waiting it to fall below $200
  2021-06-19
  Reply
  Report
- EdmundSan:
  How baba is quite low. Can Keep some shares for long time or do Leap call.
  2021-06-18
  Reply
  Report
- Jacobie:
  China companies are not as overvalue as US companies
  2021-06-18
  Reply
  Report
View more 1 comments
EdmundSan
·2021-06-17
Interesting
Reply
1
Report
cubedit
·2021-06-17
Jack Ma is the best
Reply
Like
Report
你的才华会消除恐惧转为智
·2021-06-16
真的？
Reply
Like
Report
BlueDaisy
·2021-06-16
I still like it
Reply
1
Report
Qihui_Chong
·2021-06-16
Good insights
Reply
Like
Report
Fold Replies
- MOON88:
  Agree
  2021-06-17
  Reply
  Report
BullishKing
·2021-06-16
I miss Ma.
Reply
Like
Report
quantarize
·2021-06-16
Noted
Reply
Like
Report
Dcagency
·2021-06-16
Noted
Reply
Like
Report
Tigger777
·2021-06-16
[財迷] [生氣]
Reply
1
Report
Qy98
·2021-06-16
?
Reply
Like
Report
icecatching
·2021-06-16
Ok
Reply
Like
Report
ShadowBan
·2021-06-16
evens out later on
Reply
Like
Report
杨_1688
·2021-06-16
投資了的人是傻子嗎？
Reply
Like
Report
120PL
·2021-06-16
It's worth holding a long position.
Reply
Like
Report
WeiKeong
·2021-06-16
Oic
Reply
2
Report
Fold Replies
- PeiYi99:
  Thanks
  2021-06-16
  Reply
  Report
- WeiKeong:
  Urw
  2021-06-16
  Reply
  Report
BH22
·2021-06-16
[微笑]
Reply
Like
Report
CHM_Jc
·2021-06-16
Not a big issues for long term investor.
Reply
Like
Report
Dereth
·2021-06-16
三層肉
Reply
Like
Report

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2143795146?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2021-06-16 19:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2143795146","market":"us","top_or_hot":-1,"title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","media":"Motley Fool","content":"<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">Source Link</a>\n\n</div>\n","source":"fool_stock","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BABA","symbol_name":"阿里巴巴","start_time":0,"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","article_id":"2143795146","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","pubTimestamp":1623841200,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Alibaba is facing enormous competition in its e-commerce business.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BABA":"阿里巴巴"},"translate_title":"2投资者在购买阿里巴巴-SW股票前应了解的风险","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BABA":0.9},"content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":166308233,"gmtCreate":1623990279822,"gmtModify":1703825896945,"author":{"id":"3585275877804031","authorId":"3585275877804031","name":"JilQ","avatar":"https://static.tigerbbs.com/7cb3139dd245c3734bfe1d9a9064f8d8","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3585275877804031","authorIdStr":"3585275877804031"},"htmlText":"I’m tempted to buy but wary of any&nbsp;possible Chinregulations affecting the company&nbsp;","listText":"I’m tempted to buy but wary of any&nbsp;possible Chinregulations affecting the company&nbsp;","text":"I’m tempted to buy but wary of any possible Chinregulations affecting the company","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/166308233","repostId":2143795146,"repostType":2,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":163863552,"gmtCreate":1623870613676,"gmtModify":1703822074279,"author":{"id":"3586841750312225","authorId":"3586841750312225","name":"EdmundSan","avatar":"https://static.tigerbbs.com/53c687a0d99d8a3044efdf4f8def748c","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"3586841750312225","authorIdStr":"3586841750312225"},"htmlText":"I think Alibaba is a good coy for long term","listText":"I think Alibaba is a good coy for long term","text":"I think Alibaba is a good coy for long term","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":4,"repostSize":0,"link":"https://ttm.financial/post/163863552","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4879302,"gmtCreate":1624054177289,"gmtModify":1663229344465,"authorId":3553301952962799,"author":{"id":3553301952962799,"idStr":"3553301952962799","authorId":3553301952962799,"name":"Jacobie","avatar":"https://static.tigerbbs.com/5c199595c0e19f888fc71e9a08cb0c58","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":3586841750312225,"repliedAuthor":{"id":3586841750312225,"idStr":"3586841750312225","authorId":3586841750312225,"name":"EdmundSan","avatar":"https://static.tigerbbs.com/53c687a0d99d8a3044efdf4f8def748c","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"objectId":163863552,"type":1,"supId":4867959,"prevId":4868592,"content":"I'm waiting it to fall below $<u>200</u>","text":"I'm waiting it to fall below $<u>200</u>","html":"I'm waiting it to fall below $<u>200</u>"},{"id":4868592,"gmtCreate":1624013499528,"gmtModify":1663229294034,"authorId":3586841750312225,"author":{"id":3586841750312225,"idStr":"3586841750312225","authorId":3586841750312225,"name":"EdmundSan","avatar":"https://static.tigerbbs.com/53c687a0d99d8a3044efdf4f8def748c","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":163863552,"type":1,"supId":4867959,"prevId":0,"content":"How baba is quite low. Can Keep some shares for long time or do Leap call.","text":"How baba is quite low. Can Keep some shares for long time or do Leap call.","html":"How baba is quite low. Can Keep some shares for long time or do Leap call."},{"id":4867959,"gmtCreate":1624010836650,"gmtModify":1663229292131,"authorId":3553301952962799,"author":{"id":3553301952962799,"idStr":"3553301952962799","authorId":3553301952962799,"name":"Jacobie","avatar":"https://static.tigerbbs.com/5c199595c0e19f888fc71e9a08cb0c58","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":163863552,"type":1,"supId":0,"prevId":0,"content":"China companies are not as overvalue as US <u>companies</u>","text":"China companies are not as overvalue as US <u>companies</u>","html":"China companies are not as overvalue as US <u>companies</u>"},{"id":4826671,"gmtCreate":1623890437041,"gmtModify":1663229102427,"authorId":3575859659136593,"author":{"id":3575859659136593,"idStr":"3575859659136593","authorId":3575859659136593,"name":"MOON88","avatar":"https://static.tigerbbs.com/f09b0d1b368ce9762e9af5a440d99d98","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":163863552,"type":1,"supId":0,"prevId":0,"content":"Truly agree with u","text":"Truly agree with u","html":"Truly agree with u"}],"langContent":"EN"},{"id":163863227,"gmtCreate":1623870583769,"gmtModify":1703822074118,"author":{"id":"3586841750312225","authorId":"3586841750312225","name":"EdmundSan","avatar":"https://static.tigerbbs.com/53c687a0d99d8a3044efdf4f8def748c","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"3586841750312225","authorIdStr":"3586841750312225"},"htmlText":"Interesting&nbsp;","listText":"Interesting&nbsp;","text":"Interesting","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/163863227","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":163106033,"gmtCreate":1623861146522,"gmtModify":1703821873984,"author":{"id":"3574480741555360","authorId":"3574480741555360","name":"cubedit","avatar":"https://static.tigerbbs.com/c88c88a4687027921d7da9927cd8a2c3","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3574480741555360","authorIdStr":"3574480741555360"},"htmlText":"Jack Ma is the best&nbsp;","listText":"Jack Ma is the best&nbsp;","text":"Jack Ma is the best","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/163106033","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":163056187,"gmtCreate":1623854388149,"gmtModify":1703821556679,"author":{"id":"3586139939520596","authorId":"3586139939520596","name":"你的才华会消除恐惧转为智","avatar":"https://static.tigerbbs.com/6b713c5a1981de9faeb11b424d924195","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3586139939520596","authorIdStr":"3586139939520596"},"htmlText":"真的？","listText":"真的？","text":"真的？","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/163056187","repostId":2143795146,"repostType":2,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":163031430,"gmtCreate":1623852968720,"gmtModify":1703821485327,"author":{"id":"3582677971530678","authorId":"3582677971530678","name":"BlueDaisy","avatar":"https://static.tigerbbs.com/0747094283743978b62fb8b1ee2cf44c","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3582677971530678","authorIdStr":"3582677971530678"},"htmlText":"I still like it","listText":"I still like it","text":"I still like it","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/163031430","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":169777940,"gmtCreate":1623852363480,"gmtModify":1703821450881,"author":{"id":"3573269245307398","authorId":"3573269245307398","name":"Qihui_Chong","avatar":"https://static.tigerbbs.com/d96e800ebad5d60ee51506a45948bcc6","vip":1,"crmLevel":5,"crmLevelSwitch":1,"idStr":"3573269245307398","authorIdStr":"3573269245307398"},"htmlText":"Good insights","listText":"Good insights","text":"Good insights","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/169777940","repostId":2143795146,"repostType":2,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4826681,"gmtCreate":1623890448651,"gmtModify":1635314885601,"authorId":3575859659136593,"author":{"id":3575859659136593,"idStr":"3575859659136593","authorId":3575859659136593,"name":"MOON88","avatar":"https://static.tigerbbs.com/f09b0d1b368ce9762e9af5a440d99d98","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":169777940,"type":1,"supId":0,"prevId":0,"content":"Agree ","text":"Agree ","html":"Agree "}],"langContent":"EN"},{"id":169778873,"gmtCreate":1623852290292,"gmtModify":1703821444354,"author":{"id":"3580988274582448","authorId":"3580988274582448","name":"BullishKing","avatar":"https://community-static.tradeup.com/news/8e57a03283c997f83948f8c331be008d","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"3580988274582448","authorIdStr":"3580988274582448"},"htmlText":"I miss Ma.","listText":"I miss Ma.","text":"I miss Ma.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169778873","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":169784316,"gmtCreate":1623851122735,"gmtModify":1703821381868,"author":{"id":"3581685293736736","authorId":"3581685293736736","name":"quantarize","avatar":"https://static.tigerbbs.com/7da82037240258b6b430aae255936693","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":6,"crmLevelSwitch":1,"idStr":"3581685293736736","authorIdStr":"3581685293736736"},"htmlText":"Noted","listText":"Noted","text":"Noted","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169784316","repostId":2143795146,"repostType":2,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":169793761,"gmtCreate":1623850306153,"gmtModify":1703821331136,"author":{"id":"3557142354281361","authorId":"3557142354281361","name":"Dcagency","avatar":"https://static.tigerbbs.com/811d507c3458decd0eacd9028472dcf4","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3557142354281361","authorIdStr":"3557142354281361"},"htmlText":"Noted","listText":"Noted","text":"Noted","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169793761","repostId":2143795146,"repostType":2,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":169708392,"gmtCreate":1623849910416,"gmtModify":1703821319096,"author":{"id":"3583019971396816","authorId":"3583019971396816","name":"Tigger777","avatar":"https://static.tigerbbs.com/53969c426622bc828bc9dda9aa263652","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3583019971396816","authorIdStr":"3583019971396816"},"htmlText":"[財迷]&nbsp;[生氣]&nbsp;","listText":"[財迷]&nbsp;[生氣]&nbsp;","text":"[財迷] [生氣]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169708392","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":169464135,"gmtCreate":1623847980027,"gmtModify":1703821253682,"author":{"id":"3581730059713664","authorId":"3581730059713664","name":"Qy98","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581730059713664","authorIdStr":"3581730059713664"},"htmlText":"?","listText":"?","text":"?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169464135","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":169488567,"gmtCreate":1623847460259,"gmtModify":1703821233052,"author":{"id":"3582105320233958","authorId":"3582105320233958","name":"icecatching","avatar":"https://static.tigerbbs.com/bfbb15af2af0c39e657b4d787921c41d","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"3582105320233958","authorIdStr":"3582105320233958"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169488567","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":169414415,"gmtCreate":1623847218837,"gmtModify":1703821224077,"author":{"id":"3562581397159886","authorId":"3562581397159886","name":"ShadowBan","avatar":"https://static.tigerbbs.com/aeb7ce335430462d3c1201a81eb444c0","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3562581397159886","authorIdStr":"3562581397159886"},"htmlText":"evens out later on","listText":"evens out later on","text":"evens out later on","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169414415","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":169411004,"gmtCreate":1623846988208,"gmtModify":1703821216606,"author":{"id":"3574891985411747","authorId":"3574891985411747","name":"杨_1688","avatar":"https://static.tigerbbs.com/886b0304a47d8e248701157f8d855633","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3574891985411747","authorIdStr":"3574891985411747"},"htmlText":"投資了的人是傻子嗎？","listText":"投資了的人是傻子嗎？","text":"投資了的人是傻子嗎？","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169411004","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":169437411,"gmtCreate":1623846874333,"gmtModify":1703821213194,"author":{"id":"3577829273313897","authorId":"3577829273313897","name":"120PL","avatar":"https://community-static.tradeup.com/news/c97607b34c75eab2d8d4b0216817b700","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":6,"crmLevelSwitch":1,"idStr":"3577829273313897","authorIdStr":"3577829273313897"},"htmlText":"It's worth holding a long position.&nbsp;","listText":"It's worth holding a long position.&nbsp;","text":"It's worth holding a long position.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169437411","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":169439440,"gmtCreate":1623846658480,"gmtModify":1703821201503,"author":{"id":"3574809268346931","authorId":"3574809268346931","name":"WeiKeong","avatar":"https://static.tigerbbs.com/5495c1f2e5e2d6067ea4add6d0b105c5","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3574809268346931","authorIdStr":"3574809268346931"},"htmlText":"Oic&nbsp;","listText":"Oic&nbsp;","text":"Oic","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/169439440","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4810573,"gmtCreate":1623846695925,"gmtModify":1663229026442,"authorId":3582637292455335,"author":{"id":3582637292455335,"idStr":"3582637292455335","authorId":3582637292455335,"name":"PeiYi99","avatar":"https://static.tigerbbs.com/106de96bbc6719df0070ae1f2a3daa28","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":169439440,"type":1,"supId":0,"prevId":0,"content":"Thanks","text":"Thanks","html":"Thanks"},{"id":4810581,"gmtCreate":1623846711596,"gmtModify":1663229025838,"authorId":3574809268346931,"author":{"id":3574809268346931,"idStr":"3574809268346931","authorId":3574809268346931,"name":"WeiKeong","avatar":"https://static.tigerbbs.com/5495c1f2e5e2d6067ea4add6d0b105c5","vip":1,"currentWearingBadge":{"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,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.10.25","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":169439440,"type":1,"supId":4810573,"prevId":0,"content":"Urw","text":"Urw","html":"Urw"}],"langContent":"EN"},{"id":169439074,"gmtCreate":1623846641298,"gmtModify":1703821200044,"author":{"id":"3574130370505264","authorId":"3574130370505264","name":"BH22","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3574130370505264","authorIdStr":"3574130370505264"},"htmlText":"[微笑]&nbsp;","listText":"[微笑]&nbsp;","text":"[微笑]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169439074","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":169551576,"gmtCreate":1623844494795,"gmtModify":1703821132782,"author":{"id":"3556600631001884","authorId":"3556600631001884","name":"CHM_Jc","avatar":"https://static.tigerbbs.com/38c0fd9f965d74e66058c0d8d85e962a","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"3556600631001884","authorIdStr":"3556600631001884"},"htmlText":"Not a big issues for long term investor.&nbsp;","listText":"Not a big issues for long term investor.&nbsp;","text":"Not a big issues for long term investor.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169551576","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":169550925,"gmtCreate":1623844319167,"gmtModify":1703821127873,"author":{"id":"3582039193185212","authorId":"3582039193185212","name":"Dereth","avatar":"https://static.tigerbbs.com/88e6bb13de421315d1ad0f2583c650d3","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3582039193185212","authorIdStr":"3582039193185212"},"htmlText":"三層肉","listText":"三層肉","text":"三層肉","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/169550925","repostId":2143795146,"repostType":4,"repost":{"id":"2143795146","pubTimestamp":1623841200,"share":"https://ttm.financial/m/news/2143795146?lang=&edition=fundamental","pubTime":"2021-06-16 19:00","market":"us","language":"en","title":"2 Risks Investors Should Know Before Buying Alibaba's Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2143795146","media":"Motley Fool","summary":"Alibaba is facing enormous competition in its e-commerce business.","content":"<p>Once the shining star of China's tech industry, <b>Alibaba</b> (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.</p>\n<p>Investing legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the <b>Daily Journal Corporation</b> (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.</p>\n<p>There's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.</p>\n<h2><b>1. Alibaba's cash cow is swimming with sharks</b></h2>\n<p>Founded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.</p>\n<p>But make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.</p>\n<p>For years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of <b>JD.com</b> (NASDAQ:JD), <b>Vipshop Holdings</b> (NYSE:VIPS), and <b>NetEase</b> (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when <b>Pinduoduo</b> (NASDAQ:PDD) arrived on the scene in 2015.</p>\n<p>A few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents.&nbsp;Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with <b>Tencent </b>(OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.</p>\n<p>Today, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.</p>\n<p>For now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.</p>\n<p>From a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.</p>\n<h2><b>2. Alibaba's newer ventures are mostly unprofitable</b></h2>\n<p>So far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon&nbsp;-- a company with more than <a href=\"https://laohu8.com/S/AONE\">one</a> success story.</p>\n<p>Alibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku.&nbsp;These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68%&nbsp;over the same period.</p>\n<p>The problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.</p>\n<p>In the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it.&nbsp;This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.</p>\n<p>For now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.</p>\n<h2><b>What all this means for investors</b></h2>\n<p>Alibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.</p>\n<p>But as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.</p>\n<p>While I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.</p>","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>2 Risks Investors Should Know Before Buying Alibaba's Stock</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\">\n2 Risks Investors Should Know Before Buying Alibaba's Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/\">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"},"source_url":"https://www.fool.com/investing/2021/06/16/2-risks-investors-should-know-before-buying-alibab/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143795146","content_text":"Once the shining star of China's tech industry, Alibaba (NYSE:BABA) is falling back to earth. The e-commerce titan is down over 30% from peak levels, having been walloped by regulatory investigations in the U.S. and China.\nInvesting legend Charlie Munger sees this as an opportunity. In April, Munger revealed he had bought a $37 million stake in Alibaba via the Daily Journal Corporation (NASDAQ: DJCO), where Munger sits as chairman. Some investors were left scratching their heads over this decision. Others wonder if they should do the same thing.\nThere's no doubt that Alibaba is now cheaper than it was a year ago -- but that's purely from a valuation standpoint. Investors shouldn't rush to buy the dip before knowing two of the company's biggest risks.\n1. Alibaba's cash cow is swimming with sharks\nFounded in 1999 as a platform for small businesses to sell their products via the internet, Alibaba has since expanded far beyond e-commerce. It's ventured into many other industries, such as cloud computing and entertainment.\nBut make no mistake. E-commerce is by far the largest Alibaba segment, generating 87% of the group's annual revenue. This business is also highly profitable, delivering $29.7 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in fiscal 2021.\nFor years, many players have tried to loosen Alibaba's grip on China's e-commerce industry. The likes of JD.com (NASDAQ:JD), Vipshop Holdings (NYSE:VIPS), and NetEase (NASDAQ:NTES) have been formidable rivals, but never posed a serious threat. That all changed when Pinduoduo (NASDAQ:PDD) arrived on the scene in 2015.\nA few smart moves set the company up for success. From the get-go, Pinduoduo targeted users from rural areas. This meant it would avoid directly competing with industry incumbents. Pinduoduo also focused on being a mobile-only, social e-commerce platform. This allowed it to ride the explosion of mobile devices -- and social media -- to turbocharge its own growth. On top of that, an early partnership with Tencent (OTC:TCEHY), which owns a 15.6% stake in Pinduoduo, helped the company leverage WeChat to acquire users rapidly and cheaply.\nToday, Pinduoduo has 824 million active buyers on its platform. It hit a milestone in the fourth quarter of 2020 when it overtook Alibaba in terms of active buyers -- making it China's biggest e-commerce platform by this measure. It is also outpacing Alibaba in terms of growth. Pinduoduo's revenue surged 239% in its latest fiscal quarter, while Alibaba's commerce revenue grew 72% over the same period.\nFor now, Alibaba is still holding on to its crown. Its e-commerce business generates over seven times as much revenue as Pinduoduo's. And Alibaba is taking on Pinduoduo by launching its own version of group-buying services and expanding its e-commerce business in rural areas.\nFrom a revenue perspective, Alibaba is still -- by far -- the elephant in the room. But Pinduoduo is a threat Alibaba can no longer ignore. If Pinduoduo continues expanding at the same rate, it will soon start eating into Alibaba's market share and growth.\n2. Alibaba's newer ventures are mostly unprofitable\nSo far, we've addressed the bear case for Alibaba: an increasingly competitive e-commerce industry, and intensifying regulatory scrutiny in the U.S. and China. But bulls argue that Alibaba's fast-growing new businesses could transform it into China's version of Amazon -- a company with more than one success story.\nAlibaba's business empire includes logistics division Cainiao, cloud computing service Alibaba Cloud, and streaming platform Youku. These ventures have shown great potential and, in the long run, could help diversify Alibaba's revenue. Some of these businesses are also growing rapidly. For example, Alicloud -- the biggest cloud infrastructure company in China -- grew revenue by 50% in fiscal 2021. Cainiao grew up even faster with revenue up 68% over the same period.\nThe problem with Alibaba's side bets is that most of them are unprofitable. Some of these businesses are years away from profitability and require heavy investments before they can hit a profitable scale.\nIn the past, Alibaba has funded these ventures with money generated by its e-commerce business. But as this segment comes under increasing pressure, Alibaba may soon need to start investing in it. This will reduce the amount of money Alibaba can splurge on its rising stars. The risk here is that if Alibaba is forced to slash its investments in these businesses, they may never grow big enough to become mature and profitable companies.\nFor now, Alibaba can draw on its strong balance sheet if it needs to. The company had $72 billion in cash, cash equivalents, and short-term investments as of March 31, giving it plenty of firepower to fuel its side bets. But even then, there's no guarantee Alibaba's unprofitable businesses will ever turn a profit. And if they don't, Alibaba will ultimately need to write off these investments -- destroying shareholder value.\nWhat all this means for investors\nAlibaba is currently trading at 5.4 times trailing 12-month sales. That makes it relatively cheap, especially when you consider that Tencent -- Alibaba's archrival -- trades at almost double that multiple.\nBut as Warren Buffett once pointed out, \"it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.\" Just because a stock looks cheap doesn't mean it's a good investment.\nWhile I'm not suggesting that Alibaba is not a good business -- on the contrary, its e-commerce business is still incredibly profitable -- investors will need to consider the aforementioned risks before investing in Alibaba.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":41,"commentSize":33,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}