2024-03-13 14:46:45 ET
Summary
- Despite the allure of Alibaba's attractive P/E, there are reasons to hold off on buying just yet.
- This article details two of our top concerns.
- The technical chart hints at a downward consolidation pattern, indicating difficulty for the stock to break out in the near term.
- Fundamentally, we're also concerned of the looming shadow of macroeconomic risks in China and also some risks unique to BABA's model.
Downgrade to hold
Readers following our articles know that we have been bullish on Alibaba ( BABA ) in the past 1~2 years. Well, this update is our throw-in-the-towel article. In the remainder of this article, we will detail why we’ve changed our mind and downgraded the stock to a HOLD after weighing several factors, including its attractive valuation, China's macroscopic risks, and downward technical trading pattern....
Read the full article on Seeking Alpha
For further details see:
Alibaba, China Risks, And Why We Downgraded The Stock