Alibaba stock for future

📊 Investing
1

What do you guys think for Ali for a hold for the future

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Yes, in my opinion, it is. At the current price, I think it’s a buy. I bought yesterday 4 shares.

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Nice! Some are saying the Chinese version of amazon!

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Possiblely has the potential to be

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If BABA was based in US and it had same fundamentals as present. BABA stock would be around 500-700$ no biggy.

But as it is China based and investors nowadays are sensitive to noise, you have and highly undervalued stock.

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The question is vedran are you investing or thinking of investing in baba?

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I bought before, after and will continue to buy BABA. Currently cheapest growth stock on planet.

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Similar sentiment to @Vedran. When I get any free funds I will be buying Baba…and also Tencent.

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Any thoughts on JUMIA an African alternative? Ive been looking at them lately.

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Hi @Scott,

I also considered JUMIA after being seduced with the narrative of the “Amazon of Africa”. But I see it as a more speculative e-commerce share compared to BABA. The African infrastructure is not as well developed in terms of logistics and payment. But I do have a small position due to it being in my “pie”.

If you are looking for an alternative to BABA, you might want to consider Mercadolibre, the “Amazon of Latin America”.

Disclaimer it is my most profitable share that I own.

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Nice one mate! What do you think of Libras finances though?

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Hi @Dman,

I believe the finances are great. Looking at 3rd quarter 2020 results. Highlights include:

  • Revenue grew 149% year in year to $1.12 billion (local currency)
  • Net income of $15 million with EPS of $0.28- from a loss last year.
  • Unique active users climbed 92% to 76 million.
  • Gross merchandise volume (GMV) topped $5.9 billion, up 62% in USD, up more than 117% in local currencies.

Bear in mind this result was during the context of the pandemic. Which forced many people to stay indoors and try online shopping for the first time.

The question is could this growth continue after the pandemic? IMHO yes but not the type of spectacular growth seen this year.

The reasons include:

  1. low E-commerce penetration and number of people going online (around 4%) compared to US and China (60%+). This is because of Latin America still a strongly cash dominated economy with alot of people not having credit cards.
  2. MercadoPago digital payment system is Mercadolibre’s answer to the above issue with credit cards. Their revenue grew 52% year over year in USD but, up 105% in local currencies with total payment volume up 92% in USD soaring 161% in local currencies. Also the number of payment transactions jumped to nearly 560 million, up 147%.
  3. Excellent management team who acknowledge their good fortune but are not complacent. I was particularly impressed with their analysis of their potential competitors and why they differentiate themselves from them.

I could go on but the original thread was about BABA. Which I am still bullish on.

But Mercadolibre is one on my watchlist and if they dip, I will be buying as part of my “buy and hold” portfolio.

However as alway please DYOR.

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Hmmm might do some research into libra your thoughts on jumia?

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I answered the same question from @Scott. Check my answer above :point_up_2::grinning_face_with_smiling_eyes:

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Hi I’m quite bullish on Baba stock too.

Here’s my pie i’m fully invested in might fit your investment profile and strategy.

https://www.trading212.com/pies/l7j4DfQeAgq7cmIxJZC099QpWXhL

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Definitely. And on a sell out now.
Jack Ma is ‘missing’ after he negatively spoke out to the Chinese government. That is why Alibaba is subject for investigation all of a sudden.

Prices will go up again for sure, so anything below 250 is a very good buy.

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jack will get replaced or Alibaba will get repaced.

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Look whats happening to Alibaba.

Either management will get replaced or Alibaba.

If you are investing in China you need to learn and understand the culture there. It’s very different from the west.
Anyone that disrespects the CCP is in big sh*t.
No company there is free to be successful with the CCPs blessing.

At the moment Alibaba is being taking apart

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Good buying opportunity is happening, that’s what it is.

You can sit on sidelines, we can go back to this topic in few years, with 20/20 hindsight see who is/was right.

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Let’s do that!

If it happened in the west I would say it’s a good buying opportunity, however communist countries write their own rules.

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