2024-02-09 17:21:46 ET
Summary
- Alibaba's shares fell 6% after reporting results for the December quarter, raising concerns about the company's fundamentals related to a slow post-pandemic recovery in China.
- Top line growth decelerated Q/Q, but the International Digital Commerce Group showed solid momentum with a 44% Y/Y increase in revenues.
- Insider purchases by Jack Ma and Joe Tsai show investors where the smart money is flowing.
- Alibaba announced a $25.0B stock buyback, highlighting its strong free cash flow.
- Shares of Alibaba trade at a 13% earnings yield.
Shares of Alibaba Group Holding Limited ( BABA ) fell 6% after the e-commerce company reported results for its December quarter which raised new concerns about the company's fundamentals, especially in China. However, Alibaba's earnings report showed a lot of promise as well and the company tried to woo investors by announcing a $25B stock buyback upsize. While China's economy is expected to slow in 2024, I believe the company's free cash flow looks quite good, and the buyback could allow Alibaba to buy back about 13% of its outstanding shares. Jack Ma and Joe Tsai recently bought a ton of stock for Alibaba as well and investors better take note!...
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For further details see:
Alibaba Q3: Jack Ma And Joe Tsai Are Teaching The Market A Lesson