BABASheep
2022-03-27

$Alibaba(BABA)$BABA's share price DOWN? Congratulations.

Perplexed? For long term and value investors, this short term phenomenon should be celebrated. Why? Let me explain.

BABA just announced upsized $25B (Extra large coke and fries) share buybacks. 

Assume BABA has only 3 shareholders. The price to buyout a shareholder is $50. BABA use her profit of $100 to buy out 2 shareholders. If the price reduce to $30 per buyout, BABA buys out all 3 and even have $10 left.

Thus, for this period, the cheaper BABA share is, the more the $25 Billion can buy back. This will make long term holders much richer. Remember Ben's greatest words. Short Term voting machine Vs Long Term weighing machine. 

For the traders and punters, I wish you goodluck picking a side.

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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  • BorisBack
    ·2022-03-28
    China won’t allow baba to fail. Any dips & I’m adding more. Full disclosure, i’m a long term hold.
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    • CrystalRose: 
      Looks like another great day for the chinese stocks tmr. Good luck to all who bought the dip last Friday. :D
      2022-03-28
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  • Joelchua
    ·2022-03-27
    While i wouldnt say $Alibaba(09988)$’s moat is as strong as a $Alphabet(GOOGL)$ or $Apple(AAPL)$, it has achieved massive network effect that I dont see how it will not be a trillion market cap
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  • vaztan
    ·2022-03-28
    We are waiting for a positive catalyst to propel Baba shares upward. Ukraine peace agreement with Russia should do it .
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  • StayHome
    ·2022-03-28
    Yes, waiting to buy $Alibaba(BABA)$ share if the price continue to dip further …. [Miser][Sly][Onlooker][USD]
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  • CatherineGunter
    ·2022-03-28
    Why are Bears still wanking each other off? Are they forgetting we went from 70 to 120 just under 2 weeks ago?
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  • HilaryWilde
    ·2022-03-27
    Alibaba is not for short-term speculators.
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  • LouisLowell
    ·2022-03-27
    It's really a wise decision to hold Alibaba for the long term.
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  • ElvisMarner
    ·2022-03-27
    Yes, to some extent it is good to fall.
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  • ilango007
    ·2022-03-28
    hopefully it goes below60
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  • Stx
    ·2022-03-28
    Good day
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  • Jhpuke
    ·2022-03-28
    Ok
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  • JosephPhang
    ·2022-03-27
    thk for share
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  • MooMooFarmer
    ·2022-03-27
    Good
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