2024-03-24 00:08:16 ET
Summary
- Alibaba's stock price trends have been weak in recent months owing to underwhelming financial updates, particularly for its big e-commerce segment.
- However, the company's focus on AI to drive growth has potential, particularly for its cloud business, which is a relatively small revenue contributor but saw a big EBITDA rise recently.
- The stock market multiples also continue to look attractive for now, though it's important that the impact of its revival strategy show up in the results sooner rather than later.
Since the last time I wrote about China’s e-commerce behemoth Alibaba Group Holding ( BABA ) in December last year, its stock price has gone nowhere, with a ~2% decline since. Year-to-date [YTD], it has seen an even bigger fall (see chart below). This is hardly surprising considering that the company's third quarter (Q3 FY24) figures released since have continued to be uninspiring....
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Alibaba: The AI Bet Has Potential