Alibaba (BABA) 💻 - Share Chat

Same here. I think it will go up tomorrow or other days

That’s why it’s weird they beat analyst expectations but still dropped lol just seems odd.

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New Chinese anti-trust that is being considered has caused Alibaba and the other Chinese tech giants (such as Tencent, JD.com) to tumble in the past few days. As discussed here.

Anyone else pretty concerned about this or is the long-term outlook still positive for eCommerce in China? Surely its the latter…! :face_with_monocle:

Alibaba is getting hit on both ends with the ANT IPO getting hit as well. But surely if they want to stop monopolies across industries the ANT IPO could be considered a new competitor for the market, going against Tencent/WeChat’s payment system. Although I guess ANT could kind of be considered an extension of Alibaba so still just the same few companies controlling everything.

It’s now a 20% discount from peak. The below article has some good arguments for buying for the long term, but it’s anyone’s guess how far it might fall in the short term.

Summary

  • Alibaba’s shares are down 18% over the last two weeks, creating a buy on dips opportunity.
  • 33%-owned Ant Financial’s valuation has taken a big hit on new online micro-lending rules, but the impact should be much less than the steep decline we’ve seen in Alibaba shares.
  • Anti-monopoly rules and growth vs. value rotations should not impact the long-term growth prospects of Alibaba.

Had this logic but went in a bit early, only with a fractional though.

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https://www.bloomberg.com/news/features/2020-12-22/jack-ma-s-empire-in-crisis-after-china-halts-ant-group-ipo

Since September, China’s government has launched a coordinated regulatory crackdown, which in November scuttled the Ant public offering and, together with tough new antitrust rules, triggered about a $140 billion, or 17%, decline in the market value of Ma’s Alibaba.

It might be on another side of the world, in a country with very different cultures and politics, but I kind of like seeing a government show that it’s stronger than even the largest of corporations.

Whatever the motivation is here (and I’m not saying it’s a positive step), it’s interesting at least compared to watching companies in the west largely running circles around the taxmen of nation states or being allowed, in the case of social media, to be co-opted by foreign adversaries and used to destabilise countries whilst western governments just sit and watch.

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https://amp.reddit.com/r/investing/comments/kjgtuc/reminder_baba_stock_does_not_entitle_shareholders/

Don’t know if anyone saw this? It does seem a little pessimistic but worth considering as part of the risk of Chinese stocks.

I saw it. I think it’s slight fearmongering to be honest. Does anyone actually think China would find anything useful in wiping out trillions in global assets, assets that their own industries also use to access critical capital? The only interesting point in the whole essay is which parts the VIE entity contract would cover if BABA is broken up, but even then I don’t see any difference to normal equity holders? ADR investors would get access to something at least otherwise I refer to my first point. Stock is going to get punished under those conditions regardless.

Any government could theoretically screw around the question is if the risk is miniscule. To me the risk that Jack Ma is fiddling around with investment income to boost profits is much more immediate as Stephen Clapham recently explained on Odd Lots.

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Does anyone know why this is a non-ISA share?

them’s the rules

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Anyone with a more helpful comment?

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Its an ADR not a real stock.

thanks

Then why are other UK rival platforms able to hold it still in an ISA? I may be wrong but I’m of the understanding T212 still allows it? There was some initial confusion at first but they later came out and clarified it would be accessible via ISA still? Unless anythings changed since then?

ADRs are allowed, what matters is if the exchange of the underlying security is recognised or not.

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No T212 used to let you buy it in the ISA until their compliance team realised their huge failure and forced everyone to sell and rebuy their ADRs. Finki was obviously there rolling his eyes and suggesting they use his API :joy:.