doolan.wesley

THE FUNDAMENTAL LONG PICTURE FOR ALIBABA (BABA)

Long
NYSE:BABA   Alibaba Group Holdings Ltd.
China’s economy is growing at a 6-7% annual rate and is on track to pass the United States as the largest economy in the world within the next decade or two. China’s middle class is made up of 1.3 billion individuals and those individuals are beginning to shop online a lot! In this scenario it only makes sense to own stock in the most dominant Chinese e-commerce company, Alibaba.

You have probably heard of Alibaba referred to as the Amazon ( AMZN ) of China. The similarities between Alibaba and Amazon don’t stop at online retail. Alibaba, like Amazon, also has a dominant and rapidly growing cloud computing business. In Q4, 2017 its cloud business grew by 104% YoY.

Aside from its already impressive e-commerce and cloud computing businesses, Alibaba also owns a portion of a rapidly growing fintech company called Ant Financial. We think Alibaba is well positioned for the next decade! The e-commerce, cloud computing, and the mobile payment industries should continue to see plenty of growth!

Alibaba’s stock is currently trading at forward-PE of 26. Analysts have forecasted a 5-year EPS growth rate of 29%, assigning Alibaba a PEG of 0.9.

Subscribe to our newsletter at http://robinhoodstrategy.com

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar About Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out