Analyst explains why Alibaba's recent results 'don't matter that much'

[@banger2998]

Alibaba would easily be worth 300$ per share without the ccp

[@mysandwichlife]

Or the Scamdemic.

[@marcolu5155]

Lol facts

[@Anonymous_Lee19]

The only good news is the upsized share buyback... Hope for the best!

[@TheCrabbierSolid7]

And the Cainiao ann International market

[@andreamusic-v7w]

the company is very healthy, of course recovery will take time

[@youngk4513]

Everyone stops to think logically when it comes to alibaba. The share price is just too crazy low.

[@Frenchieeeee]

Chinese company, don't care cause it will never grow outside china.

[@mychannel5304]

You forgot the CCP factor

[@freeflowtrader]

Looking at the China category the only few thing that have future might be either tencent and baidu, baba already hits all the base growth target and they’re merely shopping market place, it requires people to spend and shop, with the affordability and deflation in China who’s buying stuff? They’re saving, maybe Chinese government can ask its citizens to save less spend more to help with the economy, if that’s the case then I’m bull on baba(even a bull it will still trigger a sell off when price reach certain target, it might have something to do with market stock price uneven on different exchange, who knows)

[@bigno1900]

nothing wrong with the company, the issue is the country they are in. China government has hit tech and many industries

[@Ryanopoly]

Most people have learned why you shouldn't invest in Chinese companies over the years.

[@maxjames00077]

Its all about risk reward. I can buy Coca Cola stock which has close to zero risk but also very low reward potential. You don't buy Chinese stocks at 40 times earnings, especially when you can get way better companies for the same price in the US. Risk reward right now is amazing with Alibaba. Forward PE of 8 and thats without the cash. If it crashes, you get even higher buyback yields. Is there a risk? Sure, but China needs investor money, which minimize risk. And sooner or later US stocks will have risk again as well.

[@esb9814]

until it goes on a 5 year bull year run and then everyone chases it like its done several times in the past

[@maxjames00077]

@@esb9814 100%. Isn't it funny how everybody online was saying meta would go bankruptcy at 100$ and now at 480$ a share they all buying it again. China has risks but if China does to war all other stocks would crash too.

[@Ryanopoly]

@@esb9814 It's trading at the same level it did when it first became available... not sure that is working out for anyone.

[@joaquimcevallosmorales8944]

A bad neighbourhood, but PDD is much closer to ATH...

[@mysandwichlife]

I'm about to start DCAing on Monday. 1 share a week.

[@ggg9gg]

Wouldn't the trading fee eat into it if you only do 1 share a week

[@mysandwichlife]

@@ggg9gg depends on broker

[@pinopagani38]

when it was listed at 320, in 2020 not the last century, China was investable, but now, 4 years later, it is not investable... it seems like a joke.

[@freeflowtrader]

Baba have this stupid tendency of trying to sell even if the general market goes well, this is why baba is sorta like a seasonal pump and dump good float tight spread stock during pre market(couldn’t speak for today as I haven’t watch baba ticker for long time, stigma accumulated for two years at least, nvda was only 50-200bucks a share back in the days.)

[@jamesl2590]

Investing is a relative game. Yes, BABA will recover. But when and how much? Maybe in 5 years? By then, peeps would have gone on to bag multiple double digits returns on other more stable markets. Also bear in mind that most retail investors are not multimillionaires and do not have the luxury/risk appetite of throwing cash across the diverse range of stocks, especially with something uncertain like BABA.

[@tonez295]

Totally agree with this.

[@surfnbacker84]

China is uninvestable right now. Their real estate bubble about to pop and it’s way worse than 2008.

[@meditationforanewgeneratio2871]

You are missing the fact, that if you already know certain key risk, thats usually not what cause a crisis. Remember people are usually always surprised when things starts to collapse.

[@chintandobariya472]

Obviously IPOs requires for getting capital 😅

[@ndechindech290]

😅 your short huh shao?

[@donkeychan491]

The buybacks will inexorably force the share price higher irrespective of investor sentiment.

[@jackb616]

3% a year won’t

[@donkeychan491]

Add in the 1.4% dividend and that gives you 4.4%, which should be compared to Chinese 10yr yield of 2.4%. So that would be the equivalent of a US company paying dividends and buybacks of 4.4/2.4*US 10yr yield of 4.1% = 7.5%. And that's for a company (BABA) that can still grow earnings at a decent rate.

[@boratsmagadijev940]

the stock doesn't go up because of dividend, so you cant say it will force stock up @@donkeychan491

[@asdf123411288]

On pace for 10 percent reduction in shares this year.

[@jackb616]

@@asdf123411288 cool story bro let’s see what the actual share performance is this year

[@HelloWorld-hb7yt]

2 times free cash flow. lol...

[@蘇喬瑟夫]

All Chinese companies cook their balance sheets.

[@960john]

like Enron?

[@蘇喬瑟夫]

@@960john Yes, exactly.

[@imycunt372]

The problem is China. No matter how compelling Baba's financial metrics is, it doesn't matter.