To The Moon

It was so exciting to watch Alibaba's share price jumped last Friday on the back of a better than expected earnings report!

Alibaba share price has been undervalued and oversold due to China regulatory stance on anti monopoly.   But now there is hope and optimism.  Recently Vice Premier Liu He, who is President Xi's most senior economic aide said that the government will support the development of digital economy companies in a symposium with the heads of some of the largest tech firms.

There is also an easing of the Covid-19 lockdowns in Shanghai.  The Chinese authorities are also in talks with their US counterparts to explore cooperation to prevent the delisting of the Chinese ADRs.

The other tailwind is that US financial institutions are buying Alibaba.  Recently it was revealed that Ray Dalio's firm, Bridgewaters has increased its stake in Alibaba by 75%.  18 other financial analysts said Alibaba is a BUY with Target Price of USD168.

With these favourable conditions, Alibaba 's share price should take off.  Alibaba also has a huge free cash flow which it is deploying in share buybacks.  This would keep its shareholders happy too.

I am bullish on Alibaba and believe it is on track to grow exponentially in the long term.  The stock market is a voting machine in the short term but a weighing machine in the long term. 

@Mainstreet_Trades

@TigerStars

@CaptainTiger