Ridiculous undervaluation?
$BABA-W (09988.HK)$ selling at about 7x core earnings (excluding investments) and people are selling off the stock like the company is going to die next month?!
Even assuming the company doesn’t grow at all (ignoring the almost-1 billion annual active consumer in China and the 16% growth in core commerce revenue (without consolidation of Sun Art), this is ridiculous!
and I haven’t even mentioned the free cash flow, cloud computing growth, international commerce growth, etc.
And also do people think Alibaba will just surrender its market share easily?
Even assuming the company doesn’t grow at all (ignoring the almost-1 billion annual active consumer in China and the 16% growth in core commerce revenue (without consolidation of Sun Art), this is ridiculous!
and I haven’t even mentioned the free cash flow, cloud computing growth, international commerce growth, etc.
And also do people think Alibaba will just surrender its market share easily?
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丁蟹NA : In the short term, market sentiment wins almost everytime. real values does not matter. in fact, it most likely goes the opposite way than what retail investor thinks. When most retail investor can not take it anymore, and insititutions are holding most of the shares, thats when it will start to rebond.
102758766 OP 丁蟹NA : Yes you’re right… as Ben Graham famously said too “in the short term the market is like a voting machine, in the long term it is like a weighing machine”. Time will allow the true value to be weighed.
hgar : alibaba has monster fundamentals. they are rock solid. i am fully confident they will reach a fairer valuation within 2 years
even if they doubled overnight, they would still be modestly priced compared to US tech companies