SPY - Alibaba: Is It Really That Bad
2024-07-10 00:22:52 ET
Summary
- Alibaba stock has only returned 4% since we last wrote about it, down over 75% from its all-time high in 2020.
- Despite revenue growth slowing, Alibaba remains a cash flow machine with strong fundamentals and is trading close to all-time lows in multiple metrics.
- Alibaba's focus on share buybacks, dividend issuance, and expansion into AI and cloud computing make it a strong long-term investment with potential for significant returns.
- Alibaba provides a large margin of safety for long-term investors looking for exposure in China.
Introduction
The last time we discussed Alibaba ( BABA ) already dates back to February of this year. We rated the stock as a Strong Buy as we believed in the company’s long-term potential. Since then, the stock returned a measly 4%, while the S&P 500 ( SPY ) returned close to 12.50%. Since its all-time high in 2020, the stock is down over 75%....
Alibaba: Is It Really That Bad