Alibaba’s Vast Earnings Beat: I’m Staying Long

Summary:

• Alibaba Group Holding Limited just released its earnings and easily surpassed expectations.
• A day earlier, competitor JD.com released earnings, triggering a selloff in Alibaba shares.
• BABA’s release beat estimates on revenue as well as on EPS. On a less positive note, free cash flow declined.
• Particularly impressive were the results from the cloud segment, which accelerated its top-line growth.
• In this article, I explain why I’m staying long Alibaba stock after earnings.

Alibaba Group Holding Limited (NYSE:BABA) just released its September quarter earnings. The release beat estimates on revenue and earnings per share (EPS) and showed considerable progress in the cloud segment, which accelerated its top-line growth.

Going into

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BABA, PDD 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.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.