Alibaba Stock: Is Now A Good Time To Buy? Yes, There Is Still Upside

Jan. 25, 2023 11:41 AM ETAlibaba Group Holding Limited (BABA)18 Comments

Summary

  • Alibaba is now valued by the market at a substantially lower P/E multiple as compared to its Chinese internet peers.
  • I am of the view that BABA's shares will perform well going forward, as I have a favorable view of the company's cloud business segment and shareholder capital return policy.
  • I retain a Buy rating for Alibaba, as I think that it is a good time to buy BABA's shares.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »
Alibaba headquarters

maybefalse

Elevator Pitch

I maintain my Buy rating for Alibaba Group Holding Limited's (NYSE:BABA) [9988:HK] stock at this time. BABA's shares currently represent a good buying opportunity in view of the stock's valuation discount relative to its peers, its long-term

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Asia Value & Moat Stocks is a research service for value investors searching for attractive Asia-listed investment opportunities  with a huge gap between price and intrinsic value, leaning towards both deep value balance sheet bargains (i.e. buying assets at a discount e.g. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. buying earnings power at a discount in great companies like "Magic Formula" stocks, high quality businesses, hidden champions and wide moat compounders).


Those who believe that the pendulum will move in one direction forever or reside at an extreme forever eventually will lose huge sums. Those who understand the pendulum's behavior can benefit enormously. ~ Howard Marks

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.

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