Alibaba (BABA) 💻 - Share Chat

Anyone else looking at BABA as a long term investment? Share price has dropped 50% in the last year, PE is about 18, half of what it has been recently and half of other e-commerce companies.

It has had recent issues with the government, but looks like investors have reacted to that. They have already had their ‘telling off’ by the Chinese government.

The usual argument for me is China’s middle class is looking to grow, so should be increased revenue for them over the next 5-10 years.

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I couldn’t consider BABA until we get some sign that they’re done beating Jack Ma, I’m half expecting him to turn up Carlos Ghosan in the US.

That and the complex way you ‘own’ BABA also concerns me, the Chinese could shut this down with one tap on a keyboard.

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Hi all. New investor here, more hobby than serious investing. Any strong views on this? Given the Chinese regulation (or possible regulation) it looks like a bit of a lottery. But maybe one to buy a ticket for!

I’ve been watching Alibaba, but already have a Chinese ADR that’s currently suffering. It’s really put me off single Chinese stocks TBH.

Instead I’ve opted for a China ETF - I went with £HMCF which has 10-12% in Alibaba but tracks approx 700 other stocks. Still risky, but think it’s a better option for me.

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Looks like a lot of it has been priced in if you look at BABA’s share price 50% drop in the last year and not much has changed on the fundamentals.

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Alibaba Singles Day total sales:

2022: ???
2021: $84.5 billion
2020: $74.1 billion
2019: $38.4 billion
2018: $30.8 billion
2017: $25.3 billion
2016: $17.7 billion
2015: $14.3 billion
2014: $9.3 billion
2013: $5.8 billion
2012: $3.1 billion
2011: $800 million
2010: $140 million
2009: $10 million

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I’m gonna go for £11.37 on December 11th.

Oops, wrong thread!

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Hi everyone

Is anyone here holding BABA. It’s a rough week. :sweat_smile:

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Baba are non ISA so I can’t buy right now, are they SIPP eligible? If so I’ll probably jump in when the transfer completes.

It’s ISA eligible now

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Amazing! I didn’t spot that, what changed? Other than the share price?!

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I’m holding and buying more at these prices. It’s the deal of the decade.

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What did you make of their recent earnings this week?

I had a brief look at their income statement and their COGS have gone up a strange amount.

Nothing to worry about of course, and certainly nothing to react against on earnings week.

The earnings were good in my opinion. They were perceived as not good by the market, but the stock has already been beaten down. It has the same price as four years ago and the revenue & profit has moved massively since then. It’s the only stock in the market where the PE is less than the growth rate, that was only happenning in stocks with a single digit PE ratio and 10Y treasury bonds above 6%, it has years to happen. The price at the moment doesn’t make any sense, it will be a 1000$ stock by 2030.

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I bought the dip and will look at buying further dips as my guess would be that the evergrande fiasco may pull down the Chinese Market. Even if it doesn’t, its still at a 50 discount from last year

If BABA can be in an ISA, why not have Tencent ADR as well? They are listed in HKSE, no? so, it seems to be the same situation.

Tencent is traded OTC in the US

the issue with BABA is the unpredictability of regulation by the CCP
kidnapped Jack Ma, banned the IPO of Ant group payment, cracked down on many BABA practises deemed uncompetitive

what would CCP do next? is anything off the table?
also the potential market shock from Evergrand, along with slowing of chinese economic growth, increase in competition …

I like BABA and think its undervalued tbh. I just don’t know what’s next round the corner

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