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.
Introduction
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Alibaba: Sell The Dead Cat Bounce