BABA

Alibaba Group Holding Ltd - ADR

TMT, Consumer


Presented:08/22/2022
Price:$90.03
Cap:$240.83B
Current Price:$101.84
Cap:$243.90B

Presented

Date08/22/2022
Price$90.03
Market Cap$240.83B
Ent Value$271.40B
P/E Ratio49.13x
Book Value$54.30
Div Yield0%
Shares O/S2,675.00M
Ave Daily Vol27,344,338
Short IntN/A

Current

Price$101.84
Market Cap$243.90B
Alibaba Group Holding Ltd. engages in providing online and mobile marketplaces in retail and wholesale trade. It operates through the following business segments: Core Commerce, Cloud Computing, Digital Media & Entertainment, and Innovation Initiatives and Others. The Core Commerce segment consists of platforms operating in retail and wholesale. The Cloud Computing segment consists of Alibaba Cloud, which offers a complete suite of cloud services, including elastic computing, database, storage, network virtualization, large scale computing, security, management and application, big data analytics, a machine learning platform and Internet of Things (IoT) services. The Digital Media & Entertainment segment relates to the Youko Tudou and UC Browser businesses. The Innovation Initiatives and Others segment includes businesses such as AutoNavi, DingTalk, and Tmall Genie. The company was founded by Chung Tsai and Yun Ma on June 28, 1999 and is headquartered in Hangzhou, China.

Publicly traded companies mentioned herein: Alibaba Group Holding Ltd (BABA), SoftBank Group Corp (9984 JP), Tencent Holdings Ltd (700 HK)

Highlights

The presenter is long shares of Alibaba Group Holding Ltd (BABA), currently trading at $90 with $25 per share of cash on the balance sheet. The company is aggressively buying back stock as the macroeconomic headwind of China lockdowns are unwinding. Additionally, technical overhangs of SoftBank selling their stake and a listing change have compressed BABA’s multiple. As this plays out, he expects that earnings will come in above consensus. At current levels, he sees limited downside to $80 per share in a draconian macroeconomic landscape and upside to $180 if any enthusiasm regarding Chinese equities returns. 

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