2024-02-10 02:20:45 ET
Summary
- Despite apparently ticking all the right boxes, Alibaba continues to drift lower.
- At first sight, the company is dirt cheap, but there is quite obviously something wrong.
- In this article, I will highlight some of the key issues with Alibaba’s fundamentals, some of which matter even for the long term.
What is wrong with Alibaba?
In my last review of Alibaba (BABA) earnings I focused on "hallucinations". However, already back in April 2023, when I had warned that Alibaba would remain cheap for a long time , I had asked myself whether it was me who maybe was hallucinating something, as the overwhelming majority of analysts took the other side of the trade.
But in the end, the stock became only cheaper and underperformed the S&P 500 by a whopping 45%. Those bullish analysts were evidently missing something....
Read the full article on Seeking Alpha
For further details see:
This Is What Is Wrong With Alibaba's Earnings