2024-05-15 05:52:42 ET
Summary
- Alibaba beat top-line estimates and showed positive results in its domestic e-Commerce business for the March quarter.
- The e-Commerce company generated a significant amount of free cash flow again, which is undervalued by the market and supports a higher valuation for Alibaba's shares.
- Despite concerns about Chinese investments, Alibaba's focus on returning cash flow to shareholders makes it an attractive investment option.
Shares of Alibaba ( BABA )(BABAF) slumped yet again after the e-Commerce company submitted its earnings sheet for the March quarter that unfortunately showed a 96% decline in profitability. However, Alibaba beat on the top line and saw encouraging results from its domestic e-Commerce business. Additionally, Alibaba is generating a ton of free cash flow, which, I feel, is still widely undervalued by the market. With a considerable amount of free cash flow from its e-Commerce enterprise, I believe Alibaba's shares deserve a much higher valuation multiplier, especially now that the company also declared a special dividend in the amount of $0.66 per-ADS. Given the 6% drop in price after earnings, I believe investors are faced with another engagement opportunity!...
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For further details see:
Alibaba: Top Dividend Value