Alibaba: Time To Get Out Of China

Summary:

• Alibaba’s stock lost most of its momentum after the Chinese stimulus package failed to impress the market.
• The rising competition in the eCommerce field along with the rising macro risks make it harder for Alibaba to outcompete its international peers.
• Alibaba’s poor growth rate makes the company an unattractive investment.

In late October we said that Alibaba (NYSE:BABA) is a sell since the rally that propelled its stock to local highs on news about the Chinese stimulus package is unlikely to retain its momentum. Since that time

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