Will the forty thieves be laughing to the bank tonight?
Hopes are high on $Alibaba(BABA)$
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 $Amazon.com(AMZN)$
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.
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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…
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..
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
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.
Baba will make some of you very wealthy. It's going to be a memorable day for the bulls and the markets.
Michael Burry Scion Fund Triple its JD and BABA position=20% of its total portfolio.
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!!!
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.
This company too much competitor such as Alibaba, Lazada, Shopee and ...... Amazon can be survive but still need fight with them
It will close in the range of $117.5~118.5 and getting ready for the big jump next week.
Time to accumulate, before the train leaves the station or else you will be left on the platform
America’s 🇺🇸 Amzn is hollywood’s #1 stock pick of 2023. Foreign chatbots say otherwise. Hold Hold
After we break through 121 the next stop is 141.