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NYSE:BABA
This summary was created by AI, based on 7 opinions in the last 12 months.
Experts have mixed opinions on Alibaba Group Holding (BABA-N), highlighting its significant growth potential, particularly in cloud computing, which saw a 38% growth, and its ongoing investments in AI. Despite concerns over overspending in AI and competitive pressures in e-commerce, many reviewers see the stock as undervalued, with a P/E ratio around 17-18x. Some believe the company remains well-positioned for future growth, suggesting potential gains by 2026. However, there are warnings about market volatility and government risks in China, leading some to classify it as a trading stock rather than a long-term hold. The consensus indicates a cautious, yet optimistic sentiment towards its recovery and execution capabilities in the near future.
As China phases out its Covid policy and rapidly returns to normal, Alibaba has climbed, but it’s been a rocky ride. Year-to-date through mid-April, BABA has risen 9%, but soared 36% in January alone as shares passed $120. On March 20, they sank to $81 and in mid-April is bouncing between $95-100. To compare, Amazon has rallied 20% YTD with far less volatility. (Curiously, BABA’s beta is 0.63.) Read China reopens for our full analysis.
Today, announced it will split into 6 companies
China is focused on industries that create jobs and have ancillary industries. Tech, though, doesn't create as much employment as, say trains and biotech. This move could unlock some value, but the Chinese government will rather support the semis companies which is a better investment there.
He doesn't own Chinese stocks. Yes, he wants to invest in China, a massive market, but there's political interference and risk. He prefers multinationals that derive revenue from China, like Unilever.