Alibaba: Strong Results And Its Cheap Again

(10min)

Summary

  • Alibaba Group Holding Limited reported strong earnings, beating analyst expectations, but cash generation was weak; however, aggressive buybacks continue to reward shareholders.
  • Revenue grew 5% year-over-year, with Cloud Computing and International Digital Commerce showing promising growth, despite a challenging Chinese consumer environment.
  • Adjusted earnings per share declined slightly, but share repurchases provided a 5% tailwind, highlighting Alibaba's commitment to returning value to shareholders.
  • Despite risks from China's real estate market and potential trade tensions, Alibaba's low valuation and growth prospects make it an attractive investment opportunity.
  • Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More »

Alibaba headquarter

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Article Thesis

Alibaba Group Holding Limited (NYSE:BABA) (OTCPK:BABAF) has reported strong earnings results that beat the analyst consensus on both lines. While cash generation was sub-par during the quarter, Alibaba continued to reward shareholders handsomely with

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This article was written by

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Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally.

He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG 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.

I might buy BABA in the next couple of days.

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