Alibaba: There's Always Something To Fear

ALT Perspective profile picture
ALT Perspective


  • Investing in Chinese stocks like Alibaba has always been fraught with emotional landmines.
  • Before fears of the VIE structure possibly nullified by Beijing and delisting concerns were in vogue, short-sellers had created panic for BABA shareholders alleging accounting irregularities.
  • In 2018, the bear camp pushed the trade war as a damaging driver for BABA stock, along with the perennial "coming collapse of China."
  • Bears have also touted the moral dilemma in getting investors to avoid BABA stock, despite a lack of understanding of China.
  • I argue in this article that circumstances could change (when reality trumps rhetoric) resulting in Americans having a more favorable view of China, thereby improving investor sentiment on BABA stock.

USA and China trade war, Robot War, arm wrestling - 3D illustration

Bunpoht Baimiden/iStock via Getty Images

The share price of Alibaba Group Holding Limited (NYSE:BABA) has been on a downtrend since November 2020. Over the past year, there were several occasions when many Wall Street analysts and writers, including yours truly, believed BABA

BABA stock share price chart

BABA stock has been on a downtrend since peaking in October 2020 (YCharts)

Top companies in China, ranked by retail ecommerce sales 2019-2022


China cloud infrastructure services spend in 2021

China cloud infrastructure services spend in 2021 (canalys)

The Coming Collapse of China by Gordon Chang

Google search results

COVID outbreak

AP news

Michael Pettis tweet on the biggest threat to American economic supremacy


Alibaba vs Meta vs Netflix price
Data by YCharts

Alibaba revenue estimates

Alibaba revenue estimates (Seeking Alpha Premium)

Alibaba EPS estimates

Alibaba EPS estimates (Seeking Alpha Premium)

Alibaba EPS revision trend

Alibaba EPS revision trend (Seeking Alpha Premium)

Alibaba revenue revision trend

Alibaba revenue revision trend (Seeking Alpha Premium)

This article was written by

ALT Perspective profile picture
I am honored to have been categorized as a 5-Star financial expert and ranked among the top 2% of financial bloggers on TipRanks in 2017/18. For a period, I was among the top 3 “Opinion Leaders” for Insider Ownership and Services, as well as top 5 for Long Ideas and Fund Holdings. I am an avid reader of market news and company publications with the aim of improving my investment acumen. I enjoy expressing my findings and opinions through writings. My appreciation and understanding of business strategies improved to a whole new level since completing an MBA (Distinction) from a FT100 MBA school. I have worked in companies with businesses that span multiple industries, according me with the exposure to a myriad of sectors.Check out my Author's Picks and over 190 Editor's Picks, among the highest in Seeking Alpha, if not the most.

Disclosure: I/we have a beneficial long position in the shares of BABA, JD either through stock ownership, options, or other derivatives. 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.

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