Alibaba Stock: Yuan Devaluation Is A Major Concern

Danil Sereda
Investing Group Leader

Summary

  • Unfortunately, many analysts continue to convince us that "BABA is a great value buy" while retail investors are buying the dips.
  • I have noticed that no one (or only a very small fraction of the authors) writes about currency risks BABA has.
  • If the Chinese currency continues to devalue, we will see the company's revenue growth and profit numbers drop when converted to USD.
  • While institutional investors are selling, I do not think it makes sense to buy BABA and other Chinese tech stocks from them.
  • I reiterate my previous Neutral rating on Alibaba Group.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Alibaba headquarter

maybefalse/iStock Unreleased via Getty Images

Intro & Thesis

I have been covering Alibaba Group Holding Limited (NYSE:BABA, OTCPK:BABAF) stock on Seeking Alpha since late September 2021 - since then, I have been urging investors to weigh their risks wisely before

Can't access professional research reports from banks and hedge funds?

Information is the basis for investment decisions making. Until recently, few ordinary retail investors had access to the latest reports from banks and funds - it was too expensive.

But everything has changed! With just one subscription to Beyond the Wall Investing, you can save thousands of dollars a year. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information. But that's far from all you'll get.

This article was written by

Danil Sereda
13.08K Followers
Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About BABA Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on BABA

Related Stocks

SymbolLast Price% Chg
BABA
--
BABAF
--
Compare

Trending Analysis

Trending News