To The Moon

The Chinese tech giant still faces tough near-term challenges. Alibaba's stock price sank to its lowest levels in nearly five years following its fiscal 2022 third-quarter earnings report on Thursday.

For the period (which ended Dec. 31), the Chinese tech giant's revenue rose 10% year over year to 242.58 billion yuan ($38.07 billion), which fell short of analysts' estimates by 3.21 billion yuan. That was also its slowest growth rate since its 2014 IPO. Adjusted net income fell by 25% to 44.62 billion yuan ($7.0 billion), or 16.87 yuan ($2.65) per share, which cleared analysts' expectations by 0.82 yuan.

It mainly attributed the slowdown to macroeconomic headwinds, intense competition, and tighter government regulations. However, Alibaba's steep share price decline -- which was exacerbated by concerns about inflation, rising interest rates, and Russia's invasion of Ukraine -- has also reduced its forward price-to-earnings ratio to just 13 as of this writing.

Moreover, Alibaba's stock has also been bid down because it faces unpredictable regulatory headwinds in China as well as the threat of delisting from U.S. stock exchanges. Those long-term risks might convince value-seeking investors to stick with American tech stocks instead.

If you wish to leverage on this consider using DLCs:

$Alibaba(09988)$ 

5x long: $Alibaba 5xLongSG230329(DKCW.SI)$ 

5x short: $Alibaba 5xShortSG230330(DAJW.SI)$