- BABA rebounded strongly following Beijing's change of heart, but technical analysts would say the charts already foretold the outcome.
- Bargain hunters could have deemed BABA at a PS below 2 times and a single-digit PE was simply irresistible.
- BABA is a superior proxy to KWEB for exposure to the Chinese Internet sector, with much less homework to do and potentially better returns.
- Chinese companies like Alibaba becoming strong international giants would safeguard China's interests as national governments would think twice about imposing sanctions lest it backfires on them.
- BABA is far from a SWAN stock but meme traders and fund managers flaunting how they courageously plowed into BABA at the bottom as they report in April and continued short covering could carry the upward momentum further.
For further details see:
The Pros And Cons Of Investing In Alibaba Stock