BABA: A Value Bet on China?
Alibaba (BABA) presents a classic value investing case: a high-quality business trading at a deep discount.
The bull thesis is simple. BABA owns dominant e-commerce and cloud platforms in the world's second-largest economy, yet it trades at a bargain-bin valuation with a low P/E ratio and a fortress balance sheet full of cash. A sum-of-the-parts analysis suggests the market is valuing the whole company for less than its individual pieces.
So, why the discount? The answer lies in significant risks: a lingering regulatory crackdown from the Chinese government, geopolitical tensions with the U.S., and a sluggish domestic economy.
For value investors, the bet is that these temporary fears have overshadowed Alibaba's enduring intrinsic value. It’s a high-risk, high-potential-reward wager that the market’s scales will eventually recognize the company's true worth.
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- JackQuant·10-03I think the multi-business model of Alibaba will help restore its valuation.1Report