Don't forget that 10 years ago, Alibaba's stock price was the same, but the company has since achieved significant lifetime sales and has fewer shares outstanding. Considering inflation, Alibaba is now much cheaper to buy than it was back then.
To understand the impact of inflation, we need to calculate the value of a dollar from 2014 to the present. Inflation reduces the purchasing power of money over time. Here's the formula to calculate the adjusted value of a dollar:
For example, if the CPI in 2014 was 100 and the CPI in 2024 is 120, the value of $1 in 2014 would be worth $1.20 in 2024.
This means that Alibaba's current stock price, when adjusted for inflation, represents a better value compared to its price 10 years ago.
The idea now is for Alibaba to buy back shares, but they held off so the market makers can buy and lock in a higher price. This lump-and-dump strategy is quite clever. Let's see how they close the year. I believe they should act quickly because the news in December could open up new opportunities. It's evident now.
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