GlitterShiny
03-13

$Alibaba(BABA)$  

Why i will cont to buy BABA...do u agree? :)

Alibaba (BABA) is considered a good buy for several reasons:

1. Valuation and Undervaluation:

• Alibaba trades at a forward P/E ratio of approximately 10, significantly lower than its peers like MercadoLibre, which trade at much higher multiples.

• The stock is near its historical lows, offering a margin of safety for long-term investors.

2. Growth Potential in Key Areas:

• Alibaba’s cloud computing segment is growing rapidly, with significant scalability and profitability potential. It remains the #1 cloud provider in China and #4 globally.

• Investments in artificial intelligence and international e-commerce operations (e.g., AliExpress) are driving revenue growth, with international commerce growing 44% year-over-year.

3. Share Buybacks and Financial Strength:

• Alibaba has aggressively repurchased shares, reducing its outstanding shares by nearly 14% over three years. This signals confidence from management in the company’s undervaluation.

• The company has $84 billion in cash, providing financial stability and flexibility for future investments.

4. China’s Economic Stimulus:

• Recent fiscal stimulus measures in China could boost Alibaba’s growth prospects, as it dominates the e-commerce market with a 53% share


# Winning Trades

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.

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Comment（3）

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  • GlitterShiny
    ·03-13
    TOP
    Correction can be buying opportunities. Can consider to sell puts during pull backs closer to 130. 120 support to hold….!!
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  • VivianLau
    ·03-13
    Agree, but still worried that HK stocks might start a correction.
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  • jigglyp
    ·03-13
    BABA's potential is undeniable
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