
NYSE:BABA
Trading at an all time high today. Sees revenue growth at 26-25% for the next 3 years, extremely impressive. Cloud business growing, yet makes up only 8% of their revenue. Earnings growth rate is 19-20%, but only paying 30x forward earnings. Likes it better than Amazon.
(A Top Pick Aug 28/19, Up 54%) Market share of 62% in 2019. Moving from an online distribution platform like Amazon to a technology enabler for online merchants like Shopify. Cloud business, Ant Financial, stake in India's digital payment system. Great example of a massive technology company that has a long runway. Swallow the multiple and look to the future. $285.50 is his price target.
He follows it. They are extremely profitable and are extremely well run. He owns AMZN-Q. He has concerns about corporate governance in China. When a company is on our shores and doing similar things the he values them higher. Technically there is a strong signal for BABA-N. They should do well as along as they deliver value to their customers. He avoids Chinese companies at this time.