A Bull Market Could Be Here: 3 Reasons to Buy Alibaba Stock

13
Comment
1

A Bull Market Could Be Here: 3 Reasons to Buy Alibaba Stock

Motley Fool2023-10-19

KEY POINTSChina’s consumers are finally starting to spend money again, supported by stimulus measures.Meanwhile, Alibaba is trying out new ways to connect with consumers inside and outside of China....

Source Link

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

Report

Comment

No comments yet

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2376482614?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-10-19 11:06","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2376482614","market":"hk","top_or_hot":-1,"title":"A Bull Market Could Be Here: 3 Reasons to Buy Alibaba Stock","media":"Motley Fool","content":"<div>\n<p>KEY POINTSChina’s consumers are finally starting to spend money again, supported by stimulus measures.Meanwhile, Alibaba is trying out new ways to connect with consumers inside and outside of China....</p>\n\n<a href=\"https://www.fool.com/investing/2023/10/17/bull-market-here-3-reasons-to-buy-alibaba-stock/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Bull Market Could Be Here: 3 Reasons to Buy Alibaba Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Bull Market Could Be Here: 3 Reasons to Buy Alibaba Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-10-19 11:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2023/10/17/bull-market-here-3-reasons-to-buy-alibaba-stock/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSChina’s consumers are finally starting to spend money again, supported by stimulus measures.Meanwhile, Alibaba is trying out new ways to connect with consumers inside and outside of China....</p>\n\n<a href=\"https://www.fool.com/investing/2023/10/17/bull-market-here-3-reasons-to-buy-alibaba-stock/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4504","symbol_name":"桥水持仓","start_time":0,"source_url":"https://www.fool.com/investing/2023/10/17/bull-market-here-3-reasons-to-buy-alibaba-stock/","article_id":"2376482614","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2376482614","pubTimestamp":1697684760,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"The wheels are starting to turn in favor of China's e-commerce leader -- even if you're not hearing much about it.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4504":"桥水持仓","BK4581":"高盛持仓","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","LU0072913022.USD":"UBS (LUX) EQUITY FUND -  GREATER CHINA \"P\" (USD) ACC","LU1051768304.USD":"贝莱德新兴市场股票收益A6","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","BK4548":"巴美列捷福持仓","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","LU0821914370.USD":"贝莱德亚洲成长领袖A2","BK4565":"NFT概念","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","BK4554":"元宇宙及AR概念","BK4585":"ETF&股票定投概念","LU1688375341.USD":"贝莱德中国灵活股票基金","LU1046422090.SGD":"Fidelity Pacific A-SGD","BK4531":"中概回港概念","BK4534":"瑞士信贷持仓","LU0251143458.SGD":"Fidelity Emerging Markets A-SGD","LU0501845795.SGD":"瑞银大中华区股票基金P Acc SGD","BK4587":"ChatGPT概念","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","BK4575":"芯片概念","BABA":"阿里巴巴","LU0880133367.SGD":"UBS (LUX) EQUITY FUND CHINA OPPORTUNITY USD \"P\" (SGD) ACC","BK4220":"综合零售","BK4558":"双十一","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","BK4535":"淡马锡持仓","BK4524":"宅经济概念","BK4527":"明星科技股","BK4538":"云计算","09988":"阿里巴巴-W","BK4579":"人工智能","BK4526":"热门中概股","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","BK4503":"景林资产持仓","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","BK4588":"碎股","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","BK4122":"互联网与直销零售","BK4502":"阿里概念","BK4505":"高瓴资本持仓","LU0651946864.USD":"贝莱德新兴市场股票收益A2"},"translate_title":"牛市可能在这里：购买阿里巴巴-SW股票的三个理由","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BABA":0.9,"09988":0.6},"content_text":"KEY POINTSChina’s consumers are finally starting to spend money again, supported by stimulus measures.Meanwhile, Alibaba is trying out new ways to connect with consumers inside and outside of China.This stock is cheap relative to past and projected earnings. It just needs the right catalyst.There's no denying stocks aren't firing on all cylinders right now. Yet, a handful are creating their own tailwinds that are bigger than any headwinds that could end up blowing against them. If sustained bullishness is in the cards, shares of these companies still stand to outperform. One to consider now is Alibaba, the name behind China's e-commerce platforms Taobao and Tmall. It also owns a logistics business called Cainiao (which was recently spun off), a cloud computing arm, and a handful of other smaller projects.E-commerce is its breadwinner, however, accounting for more than half of Alibaba's revenue, and roughly the same proportion of its profits. Its stock's performance is still most closely tethered to this consumer-facing operation. That's largely why BABA stock hasn't been a particularly great performer of late. Shares fell in 2021 and 2022 due to the economic impact of the COVID-19 pandemic.Alibaba shares have continued to flounder this year as China seems unable to shake off its lingering pandemic-prompted economic weakness. Except the narrative that China's economy remains dangerously lethargic doesn't give you an accurate picture of the whole story -- particularly for Alibaba.There are three important details setting the stage for a much stronger performance ahead.1. Beijing is serious about stimulusChina's government finally lifted its heavy-handed pandemic lockdowns late last year, anticipating a robust economic rebound. It didn't really get it. Like so many other nations, however, China is too debt-laden and inflation-saddled to simply print more money as a means of stimulating its economy.Left with no acceptable alternative, though, Beijing is finally starting to turn up the economic heat. In September, its federal government introduced tax cuts and lower mortgage rates for first-time and second-time homebuyers. It also cut its foreign currency reserve requirements for banks in an effort to prop up the slumping value of the yuan. The nation's government may not be stopping there either. Just a few days ago Bloomberg reported China's economic regulators are mulling yet another round of economic stimulus.The benefit of such measures is never immediate. Indeed, it can take several months for stimulus efforts to generate measurably positive results. The market is efficient, however, when it comes to figuring out how stimulus efforts will impact corporate bottom lines. It starts pricing these changes in before the upside becomes crystal clear. Translation: Don't be surprised to see Alibaba shares perk up before it seems like they should.2. Retail spending growth is accelerating anywayStill, it's arguable that we are already seeing the economic benefit of China's mid-year stimulus action. Although retail consumption was growing firmly early in the year, that growth appears to be a function of relatively low comparisons. June and July's spending growth were more than a little disappointing on a year-over-year basis, hinting at spending weakness.A funny thing has happened in the meantime, though -- August's retail sales growth jumped 4.6% year over year, accelerating from July's tepid pace of only 2.5%. That wasn't a merely mathematical victory stemming from an ultra-low comparison, either. China's retail spending in August of last year was up an incredible 5.4%, setting the bar rather high for this year's reading. Retail consumption managed to grow briskly anyway.And this growth doesn't appear to have faltered since then. Although September's official retail spending figures aren't posted yet, China's Ministry of Commerce reports that retail sales during the nation's so-called Golden Week holiday (Sep. 29 to Oct. 5) were up 9% year over year.This of, course, bodes well for Alibaba's Tmall and Taobao, which were already doing fine anyway. Despite China's lethargic consumer spending at the time, these platforms produced sales growth of 12% during the three-month stretch ending in June. That strong growth pace could accelerate if the country's retail spending does the same.3. Alibaba is leaning in on e-commerce -- againLast but not least, while all of Alibaba's business are important to the company, its artificial intelligence, cloud computing, and logistics operations have been given more than their fair share of time, attention, and resources of late. Now, it looks like its e-commerce ventures are moving back into focus.Case in point: Alibaba executive Trudy Dai Shan's is no longer tasked with being the legal representative for Hangzhou Alimama Software Services and Taobao Software. She's now going to focus the entirety of her time on e-commerce. The company's also expanding live streaming as a means of selling more goods online. In fact, it was Trudy Dai Shan who made a point of saying during August's conference call, \"We will continue to invest heavily in developing content [including video] around shopping, consumption, and daily life.\"Perhaps the most exciting evolution now underway, however, is Alibaba's growing willingness to work with companies that could be considered competitors. For example, Alibaba is now running ads for specific Taobao and Tmall sale listings on social media platform WeChat, which is owned by indirect rival Tencent. In the meantime, it's working to build an e-commerce presence in Europe that works with local suppliers and brands instead of competing with them with Chinese brands and goods made in China.If this represents the new norm for Alibaba, it could prove to be a massive growth driver.Enough reason to buy Alibaba stockA risk-free pick? Not at all. Not only is there no such thing, but Alibaba is in the midst of several different transitions, including a major restructuring of the company's organizational chart. These changes can be distracting, and they create additional uncertainty in the meantime. The market generally doesn't reward uncertainty.With multiple reasons to expect growth ahead, however, the potential reward here is far greater than the risk. Alibaba shares have been held down -- arguably unfairly -- for over a year now despite the company's continued growth during this time, and nobody can give a legitimately good reason as to why this has been the case.That's why a little more of the same kind of growth could snap the stock out of this funk. Moreover, with shares priced at less than ten times next year's expected per-share earnings, such a snap could prove explosively bullish.The tough part is just remaining patient enough to let it happen.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":13,"commentSize":0,"repostSize":1,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}