Alibaba: Where There's Fear, There's Opportunity

Summary

• As of Wednesday, Alibaba is down nearly 33% from its late October peak despite showing robust growth rates.
• The company suffered one of its worst earnings in Q1, with solid performance eclipsed by a hefty Chinese fine.
• From behind a cloud of negative headlines, Alibaba continues to shine as a fast-growing, profitable company with China’s backing.
• In my opinion, BABA is substantially undervalued and the threats to its success are exaggerated.

Photo by maybefalse/iStock Unreleased via Getty Images

Why the Stock Sank

It’s been hard to miss the story of Alibaba’s (NASDAQ:BABA) rapid fall. Over the past six months, Alibaba's share price has fallen by nearly a third. The most recent blow

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.