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Alibaba Group Holding Limited American Depositary Shares each representing one
2024-07-16 12:15:00 ET
Summary
Alibaba's 10% rally over the last three months looks like a 'dead cat bounce' as fundamentals keep weakening.
Delivering a mere 3% revenue growth in the company's Cloud business looks ridiculous amid the ongoing global AI boom.
The core e-commerce business also demonstrates very modest growth rates, especially compared to the emerging competition.
Recent news suggests that the geopolitical situation around the U.S. and China is unlikely to get better soon.
Given these apparent red flags, I recommend investors ignore Alibaba's undervaluation, as the discount seems justified and reflects all the fundamental flaws.