BABA
📉 Alibaba’s stock has underperformed due to concerns about the Chinese economy and geopolitical tensions.
✅ The company is trading at approximately 10 times its estimated earnings.
💰 Alibaba has about $50 billion in cash, representing a quarter of its market value.
📈 There is a potential upside of around 50% if the Chinese economy stabilizes and U.S. relations do not worsen.
@rankia:
“Alibaba, the e-commerce and cloud giant, is highlighted as perhaps the most undervalued investment in the sector compared to its Western counterparts like Amazon. In 2024, Alibaba’s shares did not perform well due to doubts about the Chinese economy, a slowdown in consumption, geopolitical tensions, and potential trade policies from the new U.S. administration. However, Barron’s believes that all this pessimism is already priced in. Alibaba is trading at about 10 times its estimated earnings, while Amazon trades at over 40 times. Additionally, it has about $50 billion in cash, equivalent to a quarter of its market value. If the Chinese economy stabilizes or relations with the United States do not worsen, Alibaba’s potential upside could be around 50%, not to mention the hidden value in its holdings, cloud infrastructure, and extensive e-commerce ecosystem.”
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Read more articles by the world’s top 100 analysts on Alibaba (BABA) at the following link. BABA stock.
