Alibaba Group Holding (BABA)

Google vs. Alibaba: He owns both. Both have leadership in the West and China, respectively. Under 25% of Google's revenue stream comes from the search engine, then they re-invest it. The search engine is like a piggybank and takes up a huge proportion of overall online advertising revenue. Similarly, Alibaba is dominant in China. They have long runways (as noted in how Google reinvests revenue from searches). As for Trump's tariffs, these are nickels and dimes against the big scheme of themes--unless the tariff war escalates.

He likes this long-term. It's like Amazon, mostly in e-commerce and the Cloud. Current negative sentiments about Chinese companies are only temporary. Compared to Tencent Holdings, Alibab is pretty close in terms of valuation and growth rates. He likes and owns both names. Alibaba has a huge runway, given the huge population of China.

You own it for the long term. It is the technology component of an emerging market.

90% of its revenue comes from China, a monopoly, which is a big plus. This company is growing rapidly and they want to expand internationally which is harder. They also want to grow their Cloud business. Thei Alipay is a popular payment system used across China. This could add value to Alibaba. There's good growth potential here. But it's not a cheap stock and expect volatility.

Can it be the next Amazon and a big gainer? It's a great company and can do very well, but every time he's invested in China, his money's been stolen. He's super-cautious about China. He'd prefer American companies where he knows and trusts the law.

It is a second chance if you missed out on AMZN-Q. It is the largest E-seller in the world. You get growth and profitability combined. (Analysts’ target: $234.96).

It's a winner. It's working, but he can't figure it out. He's rather own Google or Amazon--online companies he knows and understands.

(A Top Pick Mar 2/18, Up 11%) This is a name you hold long term. There is a lot more opportunity to come in China.

It's a Chinese play on Amazon, Alphabet and eBay rolled into in one operating within a huge market. How can you not like that? Problem with Chinese companies is that the accounting is opaque. He's not comfortable with BABA's financial reporting, so he'd stay away. He's rather play their American counterparts.

It has a rounding top. You’d like to have it get emphatically above the trend line. You could own it at $165 or at a significant break out upward.

The Amazon of China. It is growing in leaps and bounds, controlling internet commerce. You have to be careful on the valuation. He would take a wait and see approach.

It is one of his favourite stocks and one of his biggest holdings. They are fascinating in that it grows so much. It is the AMZN-Q of Asia, not just China. They continue to pick up businesses that are congruent with their business. They are having a rest here and he thinks it is an excellent stock to own.

Their valuation is crazy, partially the result of being the recipient of a lot of fund flows buying. Even if they fell 20%, they're still high. But he's been wrong about this stock before.

It has a 1.11 beta. Doesn't pay a dividend. Competing with Amazon, but Amazon can't operate in China, where Alibaba can operate in America. Just had one of its best quarters ever with 56% YOY growth. Added 27 million active consumers last year, one of its biggest rises in the past three years. But there will be volatility and they can't grow 30-40% forever. Buy half a position to mitigate risk.

The Amazon of China, covering all the right bases. Valuation is okay. You're buying secular growth at 25%. The relative strength is great. It has consoliidated for a while. Downside to $170 and upside to $200, so that's your range. If ir breaks above $200, you're up up and away. Secular themes are great.