Has Trump Trade war made the Amazon of China a Screaming Buy?
Too Cheap
Alibaba is the Amazon of China. It is experiencing crazy sales growth, just like Amazon. The stress seen in Emerging Markets and Chinese Equities has made Alibaba too cheap compared to Amazon. This is a buying opportunity for the long term.
Alibaba (BABA:US) is a Chinese e-commerce powerhouse. Jack Ma, the billionaire visionary and founder has recently indicated that he will be stepping down to pursue other ventures. Losing the man will be a blow to Alibaba, but he has plenty of right hands to fill his place. At this point, Alibaba is so dominant in everything that it does, there really is no competition in China.
With Trump runnin his mouth consistently about China and slapping trade tariffs on Chinese goods, Alibaba has become a heavily shorted name. While the US market was expected to be a major driver of growth, the rest of the world is plenty of market for the Alibaba to expand into.
Right now China must be feeling like Puffy & Mase in 97. The growth of middle class continues at a blistering pace, not only in numbers but average net worth. Just like Amazon with North Americans, the Chinese consumer getting boxes delivered weekly is not uncommon.
The earnings were lower than the consensus but better than the whisper numbers. Whisper numbers had come down after Chinese internet giant TenCent (TCEHY:US) posted worse than expected earnings.
Alibaba is the Amazon of China. It is experiencing crazy sales growth, just like Amazon. The stress seen in Emerging Markets and Chinese Equities has made Alibaba too cheap compared to Amazon. This is a buying opportunity for the long term.
Alibaba (BABA:US) is a Chinese e-commerce powerhouse. Jack Ma, the billionaire visionary and founder has recently indicated that he will be stepping down to pursue other ventures. Losing the man will be a blow to Alibaba, but he has plenty of right hands to fill his place. At this point, Alibaba is so dominant in everything that it does, there really is no competition in China.
With Trump runnin his mouth consistently about China and slapping trade tariffs on Chinese goods, Alibaba has become a heavily shorted name. While the US market was expected to be a major driver of growth, the rest of the world is plenty of market for the Alibaba to expand into.
Right now China must be feeling like Puffy & Mase in 97. The growth of middle class continues at a blistering pace, not only in numbers but average net worth. Just like Amazon with North Americans, the Chinese consumer getting boxes delivered weekly is not uncommon.
The earnings were lower than the consensus but better than the whisper numbers. Whisper numbers had come down after Chinese internet giant TenCent (TCEHY:US) posted worse than expected earnings.