Billionaire Investors David Tepper and Michael Burry Piled Into Alibaba. Time to Buy the Stock Hand Over Fist?

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Billionaire Investors David Tepper and Michael Burry Piled Into Alibaba. Time to Buy the Stock Hand Over Fist?

Motley Fool05-22

Two well-regarded hedge fund managers just significantly increased their stakes in Alibaba.The beaten-down Chinese e-commerce giant is now one of the cheapest stocks around.The cash-flush company is ...

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Ng Wee Guan
·05-22
China is the future
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xupper22
·05-22
Sold mine already 🤣 they definitely didn't just buy it. They started accumulating when the tides started turning from the China bottom.
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AlexTeddySG
·05-22
Nope. They might have done it last quarter or 5 months back When the price was around 68. This quarter by now might have cashed it out Atleast some. 13F reports are indicative just not to follow blindly. Assess the stock on its merits and system that handles it.
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Time to Buy the Stock Hand Over Fist?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-22 14:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/05/21/billionaire-investors-david-tepper-michael-burry/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Two well-regarded hedge fund managers just significantly increased their stakes in Alibaba.The beaten-down Chinese e-commerce giant is now one of the cheapest stocks around.The cash-flush company is ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/05/21/billionaire-investors-david-tepper-michael-burry/\">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":"BK4505","symbol_name":"高瓴资本持仓","start_time":0,"source_url":"https://www.fool.com/investing/2024/05/21/billionaire-investors-david-tepper-michael-burry/","article_id":"2437466414","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2437466414","pubTimestamp":1716358058,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Here's why investors should consider adding the Chinese tech giant to their portfolios.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4505":"高瓴资本持仓","LU0821914370.USD":"贝莱德亚洲成长领袖A2","BK4581":"高盛持仓","09988":"阿里巴巴-W","BK4504":"桥水持仓","LU1046421795.USD":"富达环球科技A-ACC","BK4502":"阿里概念","BK4548":"巴美列捷福持仓","BK4565":"NFT概念","LU0918141887.USD":"安联亚洲实际收益股票基金","LU0651946864.USD":"贝莱德新兴市场股票收益A2","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","LU1051768304.USD":"贝莱德新兴市场股票收益A6","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","BK4554":"元宇宙及AR概念","LU1046422090.SGD":"Fidelity Pacific A-SGD","LU0251143458.SGD":"Fidelity Emerging Markets A-SGD","BK4531":"中概回港概念","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","LU0880133367.SGD":"UBS (LUX) EQUITY FUND CHINA OPPORTUNITY USD \"P\" (SGD) ACC","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU0501845795.SGD":"瑞银大中华区股票基金P Acc SGD","BK4533":"AQR资本管理(全球第二大对冲基金)","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","BK4587":"ChatGPT概念","BK4558":"双十一","BK4575":"芯片概念","BK4211":"区域性银行","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","BK4220":"综合零售","BK4524":"宅经济概念","BK4535":"淡马锡持仓","LU1823568750.SGD":"Fidelity Global Technology A-ACC SGD","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","BK4538":"云计算","LU0072913022.USD":"UBS (LUX) EQUITY FUND -  GREATER CHINA \"P\" (USD) ACC","BK4527":"明星科技股","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","BABA":"阿里巴巴","BK4588":"碎股","BK4579":"人工智能","BK4526":"热门中概股","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","LU0348814723.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"A\" (USD) INC  NC"},"translate_title":"亿万富翁投资者David Tepper和Michael Burry涌入阿里巴巴-SW。是时候买股票了吗？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BABA":1.1,"09988":0.6},"content_text":"Two well-regarded hedge fund managers just significantly increased their stakes in Alibaba.The beaten-down Chinese e-commerce giant is now one of the cheapest stocks around.The cash-flush company is displaying early signs of a turnaround.Alibaba stock is becoming more popular with billionaire investors. Two well-regarded hedge fund managers greatly increased their stakes in the company during the first quarter.David Tepper of Appaloosa Management made the Chinese e-commerce giant his top holding after more than doubling his position in Q1. Alibaba now represents about 12% of his portfolio. Tepper is worth an estimated $20 billion, according to Bloomberg.Michael Burry of Scion Asset Management, meanwhile, increased his stake in Alibaba from 75,000 shares to 125,000 shares, making it his second-largest holding behind its peer, JD.com. Burry is best known for his bet against the U.S. housing market before the subprime mortgage crisis struck in 2007, and is one the subjects of the book and movie, The Big Short.Let's look at what is attracting these billionaires to Alibaba's stock, and consider whether retail investors should follow their lead and pile into the stock.A cheap turnaround candidateOne of the first things that stands out about Alibaba today is just how inexpensive the stock is. While the stock is up about 12% year to date, the company has had a difficult few years. Its share price is down by about 50% over the past five years, and down more than 70% from its late 2020 peak. Operationally, it has grown its revenue in each of those years, but the stock has continued to drift lower.This combination of circumstances has resulted in the stock now trading at a forward P/E ratio of only 10.5. This is a low valuation for a company that is still growing.BABA PE Ratio (Forward) data by YChartsOn top of that, Alibaba generates copious cash and currently is sitting on a cash hoard of $85.5 billion. That's a lot of cash, both on an absolute basis and as a percentage of its market cap, which is around $211 billion. Excluding its cash, its forward P/E would drop closer to 6.That much cash carries with it a lot of opportunity. With the stock trading at a cheap valuation, Alibaba management has a nice opportunity to buy back shares on the cheap. And it did repurchase $4.8 billion worth of its stock in the first quarter after buying back $2.9 billion in Q4. It also authorized a fresh $25 billion repurchase program earlier this year.The company is also well-positioned to reinvest in its business. Its efforts on that score showed up in its Q1 report and commentary, where the company offered some detail about how it had spent across its various businesses to spur growth.Management has started to let its main business units run more independently so that they can make their own decisions more quickly and invest where it's needed. This led to some early signs of a turnaround at various units, including e-commerce, cloud computing, and in international cross-border retail and logistics.A bet on ChinaTepper and Burry's investments in Alibaba are also bets on China. Both fund managers hold other Chinese stocks in their portfolios, and they are clearly eyeing a rebound for the world's second-largest economy.The Chinese economy has struggled since the country ended its extensive COVID-19 lockdowns, which it continued to impose well after most other nations had loosened their policies.However, the Chinese government has been actively trying to stimulate its economy. Most recently, it announced a plan for the issuance of 1 trillion yuan ($138 billion) in \"ultra-long special treasury bonds.\" The bonds will be issued over the next several years, and the funds they raise will be aimed at modernization and innovation-driven development.The government also just lowered the minimum down payments on mortgages and removed the interest rate floor for first and second homes to help improve China's troubled housing market.An improved Chinese economy would go a long way to helping boost Alibaba's prospects given that e-commerce is its largest business. Its Tmall and Taobao e-commerce platforms are two of the biggest in the country and have been feeling pressure from increased competition. However, Tmall tends to be a higher-end retailer offering established brands, and should see a nice lift when the Chinese consumer starts to feel more confident.Image source: Getty ImagesIs it time to buy the stock hand over fist?Alibaba is undeniably cheap and holds a large cash position. While the company's growth rate has slowed, it is still growing, and has been making investments to help spur future growth. Given that, it is a great stock for retail investors to consider adding to their portfolios.However, as a Chinese company, it faces added risks and is ultimately beholden to the Chinese government. For that reason alone, I may not be buying the stock hand over fist, but I certainly think it is a stock to buy.","kind":"highlight","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":0},"commentList":[{"id":308590480580696,"gmtCreate":1716361313139,"gmtModify":1716361316554,"author":{"id":"4155806237276522","authorId":"4155806237276522","name":"Ng Wee Guan","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4155806237276522","authorIdStr":"4155806237276522"},"htmlText":"China is the future","listText":"China is the future","text":"China is the future","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/308590480580696","repostId":2437466414,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":308587927306400,"gmtCreate":1716360691560,"gmtModify":1716360695298,"author":{"id":"3579827147050987","authorId":"3579827147050987","name":"xupper22","avatar":"https://static.tigerbbs.com/6b13c95cf147fc91a64e304d76553827","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":4,"crmLevelSwitch":1,"idStr":"3579827147050987","authorIdStr":"3579827147050987"},"htmlText":"Sold mine already 🤣 they definitely didn't just buy it. They started accumulating when the tides started turning from the China bottom.","listText":"Sold mine already 🤣 they definitely didn't just buy it. They started accumulating when the tides started turning from the China bottom.","text":"Sold mine already 🤣 they definitely didn't just buy it. They started accumulating when the tides started turning from the China bottom.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/308587927306400","repostId":2437466414,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":308521701654592,"gmtCreate":1716358714106,"gmtModify":1716358718129,"author":{"id":"3571116462495160","authorId":"3571116462495160","name":"AlexTeddySG","avatar":"https://community-static.tradeup.com/news/fe3bd70688adbe645a97bfe4c0ae9c96","vip":1,"hat":"https://static.tigerbbs.com/f84d87792f02cf78e80ee34979fd31e5","crmLevel":8,"crmLevelSwitch":1,"idStr":"3571116462495160","authorIdStr":"3571116462495160"},"htmlText":"Nope. They might have done it last quarter or 5 months back When the price was around 68. This quarter by now might have cashed it out Atleast some. 13F reports are indicative just not to follow blindly. Assess the stock on its merits and system that handles it.","listText":"Nope. They might have done it last quarter or 5 months back When the price was around 68. This quarter by now might have cashed it out Atleast some. 13F reports are indicative just not to follow blindly. Assess the stock on its merits and system that handles it.","text":"Nope. They might have done it last quarter or 5 months back When the price was around 68. This quarter by now might have cashed it out Atleast some. 13F reports are indicative just not to follow blindly. Assess the stock on its merits and system that handles it.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/308521701654592","repostId":2437466414,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":5,"commentSize":3,"repostSize":3,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}