Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer

seekingalpha2022-03-24

SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...

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SmartHunter
·2022-03-25
Interesting. Please go back up to 200 bucks a pop.
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1
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KoonLin
·2022-03-24
Go go!!
Reply
3
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Okie_cheong
·2022-03-24
Up n Strong pls!!! 💪🏻💪🏻💪🏻
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3
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MeowmeowST
·2022-03-24
[Miser] [Sly] [Love you]
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4
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Johnlimwt
·2022-03-24
Go ! Alibaba Go !!!
Reply
5
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ericbie
·2022-03-24
[smile]
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5
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AnaiAnai
·2022-03-24
buy back for shareholder to exit at higher price?
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3
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ThinkOrSwim
·2022-03-24
When $25 Billion could have be spent on R&D and innovation to capture new markets, they spent it on buybacks. Short term euphoria does not change my long-term view of this counter. [Speechless]
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2
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ThinkOrSwim
·2022-03-24
"BABA black sheep, have you any wool? Yes sir, yes sir, $25 Billion full!" [LOL]
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3
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titan86
·2022-03-24
To the moon baba!
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3
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LimLS
·2022-03-24
How is it a game changer? It approved a 15b buyback last year but prices still drop like crazy. That is even taken in consideration that they had utilised 9b buyback. Increasing to 25b might give some confidence but unless the big institutions/funds starts to consider and buy, we should see at most a slow recovery or just sideway movement. The real game changer is Chinese gov coming out to give support, which they did last week. Next we need to hope SEC loosen its grip on the ADR.
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Josh87
·2022-03-24
Come back time
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1
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Thomas9413
·2022-03-24
Great
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2
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Jeff2022
·2022-03-24
Well written! Thank you!
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MuppyKoh
·2022-03-24
Please like
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zeonyeoh
·2022-03-24
Like
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Trax
·2022-03-24
Agree with you
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1nquisit0
·2022-03-24
Yes finally
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Zhiwei996
·2022-03-24
Cool! Way good move
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GeraldLee
·2022-03-24
Gamechanging indeed! Surge on
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Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9037734758,"gmtCreate":1648177662808,"gmtModify":1676534313819,"author":{"id":"3586907191866715","authorId":"3586907191866715","name":"SmartHunter","avatar":"https://static.tigerbbs.com/69402f0b380884d842e640f724fb7467","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":5,"crmLevelSwitch":1,"idStr":"3586907191866715","authorIdStr":"3586907191866715"},"htmlText":"Interesting. Please go back up to 200 bucks a pop.","listText":"Interesting. Please go back up to 200 bucks a pop.","text":"Interesting. Please go back up to 200 bucks a pop.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037734758","repostId":2221204380,"repostType":2,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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; 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}\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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037530758,"gmtCreate":1648133129616,"gmtModify":1676534308071,"author":{"id":"4089292008532580","authorId":"4089292008532580","name":"KoonLin","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":1,"idStr":"4089292008532580","authorIdStr":"4089292008532580"},"htmlText":"Go go!!","listText":"Go go!!","text":"Go go!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037530758","repostId":2221204380,"repostType":2,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037262285,"gmtCreate":1648120012860,"gmtModify":1676534306279,"author":{"id":"3586231647181730","authorId":"3586231647181730","name":"Okie_cheong","avatar":"https://static.tigerbbs.com/58d32683390fe18e22d3aed1e3b8b4bb","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3586231647181730","authorIdStr":"3586231647181730"},"htmlText":"Up n Strong pls!!! 💪🏻💪🏻💪🏻","listText":"Up n Strong pls!!! 💪🏻💪🏻💪🏻","text":"Up n Strong pls!!! 💪🏻💪🏻💪🏻","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037262285","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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; 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}\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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037216642,"gmtCreate":1648112629423,"gmtModify":1676534305736,"author":{"id":"4088945783416020","authorId":"4088945783416020","name":"MeowmeowST","avatar":"https://static.tigerbbs.com/038c54d421d1b94239827174bac11f19","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"4088945783416020","authorIdStr":"4088945783416020"},"htmlText":"[Miser]&nbsp;[Sly]&nbsp;[Love&nbsp;you]&nbsp;","listText":"[Miser]&nbsp;[Sly]&nbsp;[Love&nbsp;you]&nbsp;","text":"[Miser] [Sly] [Love you]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037216642","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037236195,"gmtCreate":1648109706200,"gmtModify":1676534305489,"author":{"id":"3578545886341911","authorId":"3578545886341911","name":"Johnlimwt","avatar":"https://static.tigerbbs.com/a1adeee2347b67dfd778339494a5fd26","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3578545886341911","authorIdStr":"3578545886341911"},"htmlText":"Go ! Alibaba Go !!!","listText":"Go ! Alibaba Go !!!","text":"Go ! Alibaba Go !!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037236195","repostId":2221204380,"repostType":2,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037230753,"gmtCreate":1648108791490,"gmtModify":1676534305402,"author":{"id":"4091681448336510","authorId":"4091681448336510","name":"ericbie","avatar":"https://static.itradeup.com/news/5cdbf09807900d6fcddfb66d0a763d84","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"4091681448336510","authorIdStr":"4091681448336510"},"htmlText":"[smile]&nbsp;","listText":"[smile]&nbsp;","text":"[smile]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037230753","repostId":2221204380,"repostType":2,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037292287,"gmtCreate":1648108012881,"gmtModify":1676534305299,"author":{"id":"3583884958321017","authorId":"3583884958321017","name":"AnaiAnai","avatar":"https://static.tigerbbs.com/8b0d0d8e20a4082ac0bc6a98756546ec","vip":1,"crmLevel":1,"crmLevelSwitch":1,"idStr":"3583884958321017","authorIdStr":"3583884958321017"},"htmlText":"buy back for shareholder to exit at higher price?","listText":"buy back for shareholder to exit at higher price?","text":"buy back for shareholder to exit at higher price?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037292287","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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; 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}\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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037299050,"gmtCreate":1648106634783,"gmtModify":1676534305152,"author":{"id":"4107161170881400","authorId":"4107161170881400","name":"ThinkOrSwim","avatar":"https://static.itradeup.com/news/456b9d740a0500cd2e7af1a1332c61de","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4107161170881400","authorIdStr":"4107161170881400"},"htmlText":"When $25 Billion could have&nbsp;be spent on R&amp;D and innovation to capture new markets, they spent it on buybacks. Short term euphoria does not change my long-term&nbsp;view of&nbsp;this counter.&nbsp;[Speechless]&nbsp;","listText":"When $25 Billion could have&nbsp;be spent on R&amp;D and innovation to capture new markets, they spent it on buybacks. Short term euphoria does not change my long-term&nbsp;view of&nbsp;this counter.&nbsp;[Speechless]&nbsp;","text":"When $25 Billion could have be spent on R&D and innovation to capture new markets, they spent it on buybacks. Short term euphoria does not change my long-term view of this counter. [Speechless]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037299050","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037207504,"gmtCreate":1648106456113,"gmtModify":1676534304979,"author":{"id":"4107161170881400","authorId":"4107161170881400","name":"ThinkOrSwim","avatar":"https://static.itradeup.com/news/456b9d740a0500cd2e7af1a1332c61de","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4107161170881400","authorIdStr":"4107161170881400"},"htmlText":"\"BABA black sheep, have you any wool? Yes sir, yes sir, $25 Billion full!\"&nbsp;[LOL]&nbsp;","listText":"\"BABA black sheep, have you any wool? Yes sir, yes sir, $25 Billion full!\"&nbsp;[LOL]&nbsp;","text":"\"BABA black sheep, have you any wool? Yes sir, yes sir, $25 Billion full!\" [LOL]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037207504","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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; 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}\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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037204258,"gmtCreate":1648106284543,"gmtModify":1676534304923,"author":{"id":"4108088198062580","authorId":"4108088198062580","name":"titan86","avatar":"https://community-static.tradeup.com/news/eb15e08e7a175844747afe82c62273ea","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"4108088198062580","authorIdStr":"4108088198062580"},"htmlText":"To the moon baba!&nbsp;","listText":"To the moon baba!&nbsp;","text":"To the moon baba!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037204258","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037206273,"gmtCreate":1648105762378,"gmtModify":1676534304850,"author":{"id":"3572923586954779","authorId":"3572923586954779","name":"LimLS","avatar":"https://static.tigerbbs.com/217b03b0c4808fb537070ba4e8f9d83f","vip":1,"crmLevel":5,"crmLevelSwitch":1,"idStr":"3572923586954779","authorIdStr":"3572923586954779"},"htmlText":"How is it a game changer? It approved a 15b buyback last year but prices still drop like crazy. That is even taken in consideration that they had utilised 9b buyback. Increasing to 25b might give some confidence but unless the big institutions/funds starts to consider and buy, we should see at most a slow recovery or just sideway movement. The real game changer is Chinese gov coming out to give support, which they did last week. Next we need to hope SEC loosen its grip on the ADR.","listText":"How is it a game changer? It approved a 15b buyback last year but prices still drop like crazy. That is even taken in consideration that they had utilised 9b buyback. Increasing to 25b might give some confidence but unless the big institutions/funds starts to consider and buy, we should see at most a slow recovery or just sideway movement. The real game changer is Chinese gov coming out to give support, which they did last week. Next we need to hope SEC loosen its grip on the ADR.","text":"How is it a game changer? It approved a 15b buyback last year but prices still drop like crazy. That is even taken in consideration that they had utilised 9b buyback. Increasing to 25b might give some confidence but unless the big institutions/funds starts to consider and buy, we should see at most a slow recovery or just sideway movement. The real game changer is Chinese gov coming out to give support, which they did last week. Next we need to hope SEC loosen its grip on the ADR.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037206273","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037208932,"gmtCreate":1648105410682,"gmtModify":1676534304809,"author":{"id":"3576516331774544","authorId":"3576516331774544","name":"Josh87","avatar":"https://static.tigerbbs.com/fb17fd187d99d3bd37691c16fd04ab6e","vip":1,"crmLevel":7,"crmLevelSwitch":0,"idStr":"3576516331774544","authorIdStr":"3576516331774544"},"htmlText":"Come back time&nbsp;","listText":"Come back time&nbsp;","text":"Come back time","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037208932","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037675437,"gmtCreate":1648103574272,"gmtModify":1676534304655,"author":{"id":"3585385605908328","authorId":"3585385605908328","name":"Thomas9413","avatar":"https://static.tigerbbs.com/effcfaa82ddb11a4fa57136b2a6f8351","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":1,"crmLevelSwitch":0,"idStr":"3585385605908328","authorIdStr":"3585385605908328"},"htmlText":"Great&nbsp;","listText":"Great&nbsp;","text":"Great","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037675437","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037675068,"gmtCreate":1648103425277,"gmtModify":1676534304643,"author":{"id":"4109979272507442","authorId":"4109979272507442","name":"Jeff2022","avatar":"https://static.itradeup.com/news/e3c358e9995749d218a540214c2210c2","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":2,"crmLevelSwitch":1,"idStr":"4109979272507442","authorIdStr":"4109979272507442"},"htmlText":"Well written! Thank you!","listText":"Well written! Thank you!","text":"Well written! Thank you!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037675068","repostId":2221204380,"repostType":2,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037671943,"gmtCreate":1648102407737,"gmtModify":1676534304550,"author":{"id":"3585354270249282","authorId":"3585354270249282","name":"MuppyKoh","avatar":"https://static.tigerbbs.com/280b63f52e5976fb134c31bfb22ec07d","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3585354270249282","authorIdStr":"3585354270249282"},"htmlText":"Please like","listText":"Please like","text":"Please like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037671943","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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; 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}\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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037673055,"gmtCreate":1648102231073,"gmtModify":1676534304525,"author":{"id":"3583654529159182","authorId":"3583654529159182","name":"zeonyeoh","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":2,"crmLevelSwitch":0,"idStr":"3583654529159182","authorIdStr":"3583654529159182"},"htmlText":"Like","listText":"Like","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037673055","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037670938,"gmtCreate":1648101721703,"gmtModify":1676534304477,"author":{"id":"4095899458661630","authorId":"4095899458661630","name":"Trax","avatar":"https://static.tigerbbs.com/1645bafcbb2131af6ed7383b7ccfb64d","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":2,"crmLevelSwitch":0,"idStr":"4095899458661630","authorIdStr":"4095899458661630"},"htmlText":"Agree with you&nbsp;","listText":"Agree with you&nbsp;","text":"Agree with you","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037670938","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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; 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}\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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037647148,"gmtCreate":1648101397742,"gmtModify":1676534304453,"author":{"id":"3553900041025922","authorId":"3553900041025922","name":"1nquisit0","avatar":"https://static.tigerbbs.com/3c22511f65f9157a35a7f105f2b1d9bf","vip":1,"crmLevel":5,"crmLevelSwitch":1,"idStr":"3553900041025922","authorIdStr":"3553900041025922"},"htmlText":"Yes finally","listText":"Yes finally","text":"Yes finally","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037647148","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037644071,"gmtCreate":1648100840410,"gmtModify":1676534304429,"author":{"id":"3585523674373467","authorId":"3585523674373467","name":"Zhiwei996","avatar":"https://static.tigerbbs.com/4a6365956853f581b591422381b6228c","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3585523674373467","authorIdStr":"3585523674373467"},"htmlText":"Cool! Way good move","listText":"Cool! Way good move","text":"Cool! Way good move","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037644071","repostId":2221204380,"repostType":2,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037645885,"gmtCreate":1648100734113,"gmtModify":1676534304421,"author":{"id":"3574715591870441","authorId":"3574715591870441","name":"GeraldLee","avatar":"https://static.tigerbbs.com/7455e2a2eb175ec763af1f094563a53f","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3574715591870441","authorIdStr":"3574715591870441"},"htmlText":"Gamechanging indeed! Surge on","listText":"Gamechanging indeed! Surge on","text":"Gamechanging indeed! Surge on","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037645885","repostId":2221204380,"repostType":4,"repost":{"id":"2221204380","kind":"news","pubTimestamp":1648092704,"share":"https://ttm.financial/m/news/2221204380?lang=&edition=fundamental","pubTime":"2022-03-24 11:31","market":"us","language":"en","title":"Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer","url":"https://stock-news.laohu8.com/highlight/detail?id=2221204380","media":"seekingalpha","summary":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba announced an upsized share buyback.</li><li>The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.</li><li>Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02bc619e12091d82a2c307028adf3dd8\" tg-width=\"750\" tg-height=\"500\" width=\"100%\" height=\"auto\"/><span>maybefalse/iStock Unreleased via Getty Images</span></p><p>Shares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba&#39;s planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba&#39;s eCommerce business, free cash flow and expected top line growth are available at an attractive price.</p><p><b>Alibaba is stepping up its share buybacks</b></p><p>Alibaba announced a massive increase in its share buyback, which couldn&#39;t have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba&#39;s free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba&#39;s market cap. Alibaba&#39;s upsized share buyback authorization caused the stock to spike 11% on Tuesday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5dc7f2094ddbf18cac52c2d1278a661e\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Alibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm&#39;s ability to return more free cash flow to shareholders in the next two years.</p><p>In the past, I often mentioned Alibaba&#39;s considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba&#39;s free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.</p><p>In the first nine months of FY 2022 Alibaba&#39;s various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba&#39;s free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4771cafa75455a1f57778fc41390464\" tg-width=\"1280\" tg-height=\"326\" width=\"100%\" height=\"auto\"/><span>Alibaba</span></p><p><b>Why the buyback is so important</b></p><p>There are two reason why I believe the buyback is so important and game-changer for Alibaba&#39;s investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba&#39;s growth prospects. The second reason is that Alibaba&#39;s free cash flow is hugely undervalued right now, so a buyback couldn&#39;t have come at a better time. As I indicated in my last work on Alibaba, the firm&#39;s adjusted market capitalization, adjusted for Alibaba&#39;s considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba&#39;s net cash represents approximately 20% of Alibaba&#39;s market cap, lending a large safety margin to Alibaba&#39;s stock.</p><p>This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba&#39;s free cash flow is still very, very attractively priced. Alibaba&#39;s current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.</p><p><b>Risks with Alibaba</b></p><p>An ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba&#39;s revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.</p><p><b>Final thoughts</b></p><p>Alibaba&#39;s upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm&#39;s FCF is massively undervalued. The P-FCF ratio for Alibaba&#39;s business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba&#39;s platform business!</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Alibaba's Massive $25 Billion Buyback Is A Game-Changer</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; 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}\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\">\nWhy Alibaba's Massive $25 Billion Buyback Is A Game-Changer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-24 11:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous ...</p>\n\n<a href=\"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4538":"云计算","BK4527":"明星科技股","BK4579":"人工智能","BK4526":"热门中概股","BABA":"阿里巴巴","09988":"阿里巴巴-W","BK4535":"淡马锡持仓","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK1521":"挪威政府全球养老基金持仓","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK1586":"云计算","BK4504":"桥水持仓","QNETCN":"纳斯达克中美互联网老虎指数","BK1591":"就地过年概念","BK4548":"巴美列捷福持仓","BK1142":"互联网与直销零售","BK4565":"NFT概念","BK1517":"云办公","BK1608":"元宇宙概念","BK4554":"元宇宙及AR概念","BK1575":"同股不同权","BK1502":"双十一","BK1584":"蚂蚁金服概念","BK4531":"中概回港概念","BK1501":"阿里概念股","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK1588":"回港中概股","BK4524":"宅经济概念"},"source_url":"https://seekingalpha.com/article/4497226-alibaba-25b-stock-buyback-game-changer","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2221204380","content_text":"SummaryAlibaba announced an upsized share buyback.The bruised e-Commerce firm is going to buy back $25B of its shares over the next two years, showing an increase of $10B over the previous authorization.Massive share buyback allows Alibaba to return a considerable amount of free cash flow to shareholders at a time when FCF is undervalued.maybefalse/iStock Unreleased via Getty ImagesShares of Alibaba (NYSE:BABA) have been brutalized in March, but signs of an easing government regulation and a massive increase in Alibaba's planned share buyback have led to a fundamentally improved outlook for the stock lately. Delisting fears are massively exaggerated and Alibaba's eCommerce business, free cash flow and expected top line growth are available at an attractive price.Alibaba is stepping up its share buybacksAlibaba announced a massive increase in its share buyback, which couldn't have come at a better time. Shares of Alibaba dropped by more than half over the last year and they trade, by and large, disconnected from Alibaba's free cash flow value. The buyback, which comes just a week after shares were subjected to resurfacing ADR delisting fears, has been increased from $15B to $25B. According to a company release from March 22, Alibaba is going to execute the share buyback over a period of two years. The $25B buyback calculates to about 8.6% of Alibaba's market cap. Alibaba's upsized share buyback authorization caused the stock to spike 11% on Tuesday.Data by YChartsAlibaba is no stranger to share buybacks and regularly repurchases American depositary shares under existing share buyback authorizations. Under the previous buyback authorization, Alibaba repurchased $9.2B of its American depositary shares and the new buyback significantly expands on the firm's ability to return more free cash flow to shareholders in the next two years.In the past, I often mentioned Alibaba's considerable free cash flow, high free cash flow margins and still attractive long term growth prospects in the Chinese e-Commerce market as reasons to buy the stock. Alibaba's free cash flow value, however, is the best reason to buy into Alibaba. The Chinese e-Commerce firm has also made good use of its free cash flow in the past, investing in new growth segments such as cloud computing or digital media.In the first nine months of FY 2022 Alibaba's various businesses generated 113.9B Chinese Yuan in free cash flow which calculates to $17.9B. Alibaba's free cash flow margin for the first nine months of FY 2022 was 18%. Alibaba also has a history or returning a significant amount of its free cash flow to shareholders, which is why the upsized share buyback is such a big deal. In the first nine months of FY 2022, Alibaba reinvested 41.8B Chinese Yuan of its free cash flow back into its businesses which calculates to a 37% FCF share. A massive 49.1B Chinese Yuan of free cash flow went to share repurchases in the last nine months, meaning Alibaba returned 43% of its free cash flow to shareholders. The upsized buyback will allow Alibaba to use an even higher percentage of free cash flow going forward to buy back shares.AlibabaWhy the buyback is so importantThere are two reason why I believe the buyback is so important and game-changer for Alibaba's investors. The first reason is that Chinese Big Tech is highly unpopular right now and the buyback does help investors regain confidence in Alibaba's growth prospects. The second reason is that Alibaba's free cash flow is hugely undervalued right now, so a buyback couldn't have come at a better time. As I indicated in my last work on Alibaba, the firm's adjusted market capitalization, adjusted for Alibaba's considerable net cash of $59.5B, translated to a P-FCF ratio of just 7 X just a week ago. Alibaba's net cash represents approximately 20% of Alibaba's market cap, lending a large safety margin to Alibaba's stock.This week, shares of Alibaba continued to surge and reversed some of the losses sustained earlier in the month. However, Alibaba's free cash flow is still very, very attractively priced. Alibaba's current P-FCF ratio is 8x, assuming $7.0B in quarterly free cash flow next year (implied free cash flow margin of 18%) and total revenues of $157B.Risks with AlibabaAn ADR delisting is unlikely, I believe, but new regulatory measures are a risk for shares of Alibaba going forward. There is also a potential risk of Alibaba getting slapped by regulators with new fines which would lower free cash flow estimates. The biggest commercial risk for Alibaba, as I see it, is a prolonged slowdown in revenue growth, especially in its all-important domestic e-Commerce business which still generates the majority of Alibaba's revenues. What would change my mind about Alibaba is if the company saw a material decline in its free cash flow growth and margins or if the government forced the e-Commerce company to sell off valuable parts of its business.Final thoughtsAlibaba's upsized buyback is a game-changer because it allows Alibaba to return a larger percentage of its free cash flow to shareholders at a time in which the firm's FCF is massively undervalued. The P-FCF ratio for Alibaba's business, which keeps growing at 20% annually on the top line, is just 8 X. I believe Alibaba is doing exactly the right thing here and the buyback has the nice side effect of boosting confidence in Alibaba's platform business!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":330,"commentSize":31,"repostSize":0,"favoriteSize":3,"likeStatus":false,"favoriteStatus":false}}