2024-04-18 13:38:46 ET
Summary
- Alibaba's stock is trading at a significant discount compared to US stocks, with net cash and investments making up 75% of its market cap.
- The company faces strong competition from domestic peer Pinduoduo, which is outperforming Alibaba in e-commerce growth rates.
- Concerns about geopolitical risks and regulatory intervention in China may hold back the stock price - and increase the risks.
- I explain how call options can help reduce downside risk while maintaining most of the upside exposure.
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For further details see:
Alibaba: Cheap But Risky, My Strategy For Reducing Downside Risk