- Alibaba is one of the cheapest, if not the cheapest, large cap tech companies in the world.
- The problem a lot of investors have with investing in the company is not the valuation, but the numerous regulatory risks.
- We suggest a pair trade idea which could help neutralize the regulatory risk of an investment in Alibaba, while reducing exposure to the money losing food delivery segment.
- The idea we propose is buying Alibaba and selling Meituan, which we believe is the best approach to neutralize regulatory risks. Do you agree with this approach? Let us know in the comment section below.
For further details see:
Alibaba Without Regulatory Risks? Buy Alibaba Sell Meituan