Will the forty thieves be laughing to the bank tonight?

Hopes are high on $Alibaba(BABA)$ ’s earnings slated to be released before US market opens tonight, after its peers $JD.com(JD)$ and Tencent reported results that had exceeded market expectations.

Alibaba and JD are the two largest Chinese e-commerce companies typically benchmarked against each other, though their business models are essentially distinct from one another. Alibaba offers third-party platforms for consumer-to-consumer and business-to-consumer on-line transactions, whereas JD derives most of its revenue from its first-party marketplace by maintaining its own inventory and selling direct to consumers, not unlike Amazon does. By virtue of not having to maintain its own inventory of merchandise, Alibaba’s operating margin is considerably higher than that of JD.

Furthermore, Alibaba has a more diversified business empire, including its fledgling Alibaba Cloud that is poised to contribute more significantly to its parent’s earnings. Hence, Alibaba’s results may not reflect those announced of JD.

I expect Alibaba’s e-commerce business to post modest growth given heightened consumers' consciousness on discretionary spendings amidst a sticky inflation and looming recession. Nevertheless, advertising fees to promote listings on its e-Commerce platforms should help to mitigate some slowdown in spending.

On the other hand, with the Chinese economy re-opening and global trend towards automation of operations and digitisation of businesses, I expect Alibaba Cloud business to gain traction domestically and give its larger competitors the likes of $Amazon.com(AMZN)$ , $Microsoft(MSFT)$ and $Alphabet(GOOG)$  a run for their money.

Recent easing of the clampdown on the tech sector has also renewed innovations in the sector. Nevertheless, unless there is a significant and sustainable consumption-led pickup in the Chinese economy, I expect Alibaba’s performance to remain subdued in the near term. With higher interest rates to rein in the stubbornly high inflation, rising geopolitical tensions and an impending global recession, there may be more headwinds before Alibaba regains its past glory.

@TigerWire @MillionaireTiger @CaptainTiger @TigerStars @TigerEvents 

# 💰 Stocks to watch today?(20 Dec)

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  • jingli
    ·2023-05-18
    TOP

    All that free cash flow in the future is going to buybacks and accretive acquisitions for the holding company. It’s amazing that BABA isn’t trading much higher by now. Only a matter of time…

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    • Healthy Tiger
      Indeed!
      2023-05-19
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    • pekss
      Market can be irrational at times!
      2023-05-18
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  • snixxx
    ·2023-05-18
    TOP

    I trimmed some of my NVDA to buy some of AMZN. I got a hundred at ninety three dollars a share good luck to me..

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    • Healthy Tiger
      AMZN is on an uptrend!
      2023-05-19
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    • lyj1999
      kk
      2023-05-18
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    • pekss
      Good luck! Amazon has been on a winning streak lately!
      2023-05-18
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  • jingli
    ·2023-05-18
    TOP

    If the stock goes down I buy more if the stock goes up I buy more I wil win in the end baba undervalued end off

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    • lyj1999
      kk
      2023-05-18
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    • pekss
      Hope the market uncovers Alibaba’s undervaluation soon as its values get unlocked!
      2023-05-18
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  • wigglyz
    ·2023-05-21
    TOP

    Look for the big $3 EPS in 2023. Stock should probably be at least 30% higher. It is Amazon. PE of 400 is warranted 30 years after the founding of the company.

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    • pekss
      Hope that ANT will be publicly listed soon to uncover more value in Alibaba!
      2023-05-21
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  • mizzle
    ·2023-05-18
    TOP

    Baba will make some of you very wealthy. It's going to be a memorable day for the bulls and the markets.

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    • Healthy Tiger
      Great!
      2023-05-19
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    • pekss
      Indeed! Hope the spin-offs will unlock great values for the shareholders!
      2023-05-18
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  • fizzik
    ·2023-05-18
    TOP

    Michael Burry Scion Fund Triple its JD and BABA position=20% of its total portfolio.

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    • eveev
      Great testimony!
      2023-05-19
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    • Healthy Tiger
      Wow!
      2023-05-19
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    • pekss
      Yeah! Hope he gets it right and wins big!
      2023-05-18
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  • nimbly
    ·2023-05-21
    TOP

    Amzn Shorts have hit rock bottom desperate attempts to shake our economic perspective have failed. No place to go from here but up! Big news coming!!!

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    • ngph
      Up and away!
      2023-05-21
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    • pekss
      Indeed, something appears to be brewing!
      2023-05-21
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  • ColinThorndike
    ·2023-05-18
    TOP

    Disclosure: I own BABA and BIDU. I think all Chinese tech will make big rallies the second half of the year. The time to buy is now.

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    • Healthy Tiger
      Can’t agree more!
      2023-05-19
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    • pekss
      With the easing of regulatory clampdown of the tech sector, light is at the end of the tunnel!
      2023-05-18
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  • bubblyx
    ·2023-05-21
    TOP

    This company too much competitor such as Alibaba, Lazada, Shopee and ...... Amazon can be survive but still need fight with them

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    • pekss
      Indeed, JD.com too ……..
      2023-05-21
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    • ngph
      Rising competition in e-commerce
      2023-05-21
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  • pixiezz
    ·2023-05-21
    TOP

    It will close in the range of $117.5~118.5 and getting ready for the big jump next week.

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    • pekss
      Fast and furious!
      2023-05-21
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  • zinglee
    ·2023-05-21
    TOP

    Time to accumulate, before the train leaves the station or else you will be left on the platform

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    • pekss
      Looking forward to a strong rebound soon!
      2023-05-21
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    • ngph
      Boarded before the boat leaves :)
      2023-05-21
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  • Healthy Tiger
    ·2023-05-19
    TOP
    Alibaba will be a rewarding investment for long-term shareholders!
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    • pekss
      Yeah! I’ll be patient [Grin]
      2023-05-19
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    • eveev
      Yeah! To the moon!
      2023-05-19
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  • vippy
    ·2023-05-21
    TOP

    America’s 🇺🇸 Amzn is hollywood’s #1 stock pick of 2023. Foreign chatbots say otherwise. Hold Hold

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    • pekss
      Vested for the long run!
      2023-05-21
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  • cheerzy
    ·2023-05-21
    TOP

    After we break through 121 the next stop is 141.

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    • ngphReplying topekss
      To the moon!
      2023-05-21
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    • pekss
      Return of the King!
      2023-05-21
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  • eveev
    ·2023-05-19
    TOP
    Be patient! Alibaba has a lot of hidden values!
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    • pekss
      Indeed, much hidden values to be uncovered over time!
      2023-05-19
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    • Healthy Tiger
      Agree!
      2023-05-19
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  • ngph
    ·2023-05-18
    TOP
    Alibaba to the moon!
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    • pekss
      Yeah, slowly but surely!
      2023-05-18
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  • ngph
    ·2023-05-21
    TOP
    Tomorrow will be better!
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    • pekss
      Yeah!
      2023-05-21
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  • Zwong
    ·2023-05-19
    Great ariticle, would you like to share it?
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    • pekss
      [OK][Grin]
      2023-05-20
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  • Taurus Pink
    ·2023-05-19
    [微笑] [微笑] [微笑]
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    • pekss
      [Smile]
      2023-05-19
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  • Healthy Tiger
    ·2023-05-22
    Yeah, up and up!
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    • pekss
      Yes!
      2023-05-22
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