Alibaba Should Keep Rising From Here

Summary:

  • Alibaba’s stock remains a soft ‘buy’ due to attractive pricing and a recent regulatory victory, despite mixed performance across its diverse operations.
  • The company’s Taobao and Tmall Group saw a slight revenue decline, but Alibaba International Digital Commerce Group and Cloud Intelligence Group showed significant growth.
  • Investments in technology and user experience have impacted short-term profits, but these are strategic moves for long-term improvement.
  • Despite challenges, Alibaba’s valuation is compelling, especially when compared to similar firms, justifying a continued soft ‘buy’ rating.

Alibaba company office building and brand logo

Robert Way

One company that I have been following for some time is Alibaba Group Holding Limited (NYSE:BABA). With a market capitalization of $195.8 billion as of this writing, the business is one of the largest on the planet. Those who

Company Price/Earnings Price/Operating Cash Flow EV/EBITDA
Alibaba 25.1 10.4 7.4
Alphabet 21.9 17.4 15.3
Amazon (AMZN) 44.2 17.5 18.8


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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