BABA Selloff looks like a crazy overreaction

BrianTycangco鄭彥渊
05-15

$Alibaba(BABA)$ $Alibaba(09988)$ 1Q24 results are out. Beat on revenue but slight miss on EPS. Market is acting like it missed bigly on all metrics.

I think it's more to do with the fact that core business grew slower than the general market. Remember that China 1Q online retail sales gained 12.4%. That 4% topline growth for Taobao & TMall is significantly slower than the market.

So, it seems that other players are taking market share away from Alibaba. We'll find out when $JD.com(JD)$ $MEITUAN-W(03690)$ $MEITUAN(MPNGF)$ $PDD Holdings Inc(PDD)$ report in the coming days.

Nevertheless, Alibaba is clearly returning to growth, driven by its international business. It now accounts for 11.3% of total rev vs. 8.5% last year. Logistics also growing strong.

This selloff in premarket looks like a crazy overreaction and possibly influenced by short-sellers trying to pour cold water on this rally in CN tech that's now up 35% from Jan lows. $KraneShares CSI China Internet ETF(KWEB)$

https://twitter.com/BrianTycangco/status/1790349110131978606

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  • LetsInvest
    ·05-15
    Rip man lets hope it doesnt fall back to $66 or $58
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  • joozy
    ·05-15
    Let's wait for other players' reports before drawing conclusions.
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  • VivianChua
    ·05-15
    Nice 💚 💚 💚
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