2024-05-15 08:59:28 ET
Summary
- Holding around 50% of the Chinese e-commerce market, Alibaba's robust ecosystem and control over platforms fortify its competitive edge against rivals like JD.com and Pinduoduo.
- After re-evaluation suggests a fair value of $185.15 per share, reflecting a substantial upside potential of 132.8% from the current price, with a projected future price for 2029 at $285.72.
- While facing risks from economic challenges and global competition, Alibaba's strong fundamentals warrant a "strong-buy" rating, given its expanding addressable market and potential for growth.
Thesis
In my previous article about Alibaba Group Holding Limited ( BABA ), I rated the stock as a "strong buy" citing that my valuation suggested a fair price per share of $148.10, which at that time represented an upside of up to 87.56%.
In FQ3 2024 earnings , Alibaba beat the EPADS estimate by $0.03, which is 1.1% higher than the estimated $2.64, and beat on revenue by 7.41% from the expected $36.4B....
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For further details see:
Alibaba: The Stock Is Cheap, Since Net Income Needs To Fall To $284.9M To Be Fairly Valued