2024-03-21 14:59:56 ET
Summary
- Alibaba Group Holding Limited is one of the world's leading e-commerce businesses, with 50% market share in China and rapidly-growing international operations.
- The company's operations span various sectors, with half its revenue derived from Chinese retail platforms and the remainder attributable to smaller segments such as cloud services, overseas retail, and logistics.
- Despite its dominant market position, Alibaba is extremely cheap. With TBV at >50% of the company's market cap, the valuation looks even more untenable on an Enterprise Value basis.
- Alibaba's strong financial performance has allowed the company to accumulate an $86.6B war chest, much of which management is returning to shareholders in the form of aggressive buybacks.
- As a Chinese company, Alibaba is subject to a number of unique risks. Most notably, future geopolitical confrontation between the U.S. and China could impact the ownership interests of U.S. investors in China.
Alibaba Group Holding Limited (BABA) is a company that needs little introduction. With an international presence spanning from retail to wholesale, from cloud computing to digital media, and from food delivery to venture capital, the Chinese e-commerce behemoth is difficult to ignore from either an investment or consumer standpoint, even in the Western world....
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For further details see:
Alibaba: The Cheapest Chinese Megacap Keeps Getting Cheaper