Alibaba: Now Or Never

Summary:

  • Alibaba’s new leadership, with Eddie Wu as CEO, focuses on improving customer experience and stabilizing market share.
  • GMV growth has shown resiliency for two consecutive quarters.
  • The Cloud and International Commerce segments are improving and could prove to be key economic profit drivers in the future.
  • Still, the sentiment surrounding the stock is as pessimistic as it gets, creating a great risk/reward scenario with a strong double-digit total return potential.

Alibaba company office in China

Robert Way

What’s going on with the company?

Management shakeup

Alibaba’s last three years have been tumultuous. At this point, we believe that the firm’s previous CEO, Daniel Zhang, has been neglecting innovation and his inability to execute allowed


Analyst’s Disclosure: I/we have a beneficial long position in the shares of BABA, TCEHY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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