2024-02-21 07:50:03 ET
Summary
- Alibaba stock has experienced a steep decline, losing as much as 81.83% and currently down 77%.
- The Chinese economy is slow, but an acceleration would greatly benefit Alibaba. This could cause significant multiple expansion and as such a swift increase in the stock price.
- Alibaba is cheap compared to other e-commerce players, with impressive financial metrics and multiples.
- It might be wise to wait for a technical breakout to get the best possible risk/reward opportunity.
- We believe Alibaba is a strong buy as the underlying value is simply too big to ignore.
Introduction
The last time we wrote about Alibaba (BABA) was almost a year ago. In this article, we will take a deeper look at what changed and why we remain bullish.
Alibaba was once a beloved investment for growth and value investors all over the world. In more recent years, the company hasn't received much love. The disappearance of Jack Ma, regulation fears, trade war fears, and even geopolitical fears with the possible scenario of China invading Taiwan....
Read the full article on Seeking Alpha
For further details see:
Alibaba: When Will The Sentiment Turn Around?