Alibaba Stock Update - Buy BABA Today? | Summary and Q&A

TL;DR

Alibaba's stock has been affected by slower growth, strict COVID policies, and geopolitical risks, but it still holds potential for investors.

Key Insights

• 👨‍💼 Alibaba's business segments include China Commerce, Cloud business, International Commerce, Smart Logistics Network, Local Services, Digital Media, and Innovative initiatives.
• 💓 The company has beaten earnings estimates in recent quarters, but its growth has slowed down due to strict COVID policies in China.
• 🥶 Free cash flow numbers show a decline in 2022, but analysts expect a recovery in the future.
• 🧚 Based on discounted cash flow analysis, the fair value of Alibaba stock is estimated to be around $160 per share.
• ⚾ Geopolitical risks associated with investing in a Chinese-based company are a concern for investors.
• 🙃 The author, who owns shares in Alibaba, sees potential in the stock but acknowledges the associated risks.
• 🎭 If sentiment towards Alibaba stock improves and geopolitical risks decrease, the stock could perform well.

Transcript

hi I'm Jimmy in this video we're looking at alibaba's stock ticker symbol b-a-b-a so we're going to kick it off with the basics of alibaba's business then we're going to look at their most recent earnings update and then we're going to try to come up with a fair value for Alibaba stock using discount of free cash flow ultimately trying to answer th... Read More

Questions & Answers

Q: What are the main business segments of Alibaba?

Alibaba's business segments include China Commerce, Cloud business, International Commerce, Smart Logistics Network, Local Services, Digital Media, and Innovative initiatives.

Q: How has Alibaba performed in terms of earnings?

Alibaba has beaten earnings estimates in the past four quarters, except for Q2 2022.

Q: What has caused the recent decline in Alibaba's growth?

The decline in growth can be attributed to strict COVID policies in China, which slowed down the company's business operations.

Q: What are analysts' expectations for Alibaba's future free cash flow?

Analysts expect Alibaba's free cash flow to recover to pre-COVID levels and continue growing from there.

Q: What is the estimated fair value of Alibaba stock?

Based on discounted cash flow analysis, the estimated fair value of Alibaba stock is around $160 per share.

Q: Should investors buy, sell, or hold Alibaba stock?

This decision depends on individual risk tolerance. While there are geopolitical risks associated with investing in a Chinese-based company, Alibaba's potential for growth and its strong free cash flow generation make it an attractive investment opportunity for some investors.

Q: Is there a possibility of the geopolitical risks reducing in the future?

If sentiment towards Alibaba stock changes and geopolitical risks decrease over the coming years, there is a potential for the stock to perform well.

Q: How does the author personally view investing in Alibaba stock?

The author personally owns shares of Alibaba and sees potential in the stock. However, they acknowledge the geopolitical risks and are cautious in making it their largest portfolio position.

Summary & Key Takeaways

• Alibaba's business segments include China Commerce (similar to Amazon in China), Cloud business, International Commerce, Smart Logistics Network, Local Services, Digital Media, and Innovative initiatives.

• The company has beaten earnings estimates in the past four quarters, but its growth has slowed down due to strict COVID policies.

• Free cash flow numbers show a decline in 2022, but analysts expect it to recover to pre-COVID levels in the future.

• The fair value of Alibaba stock is estimated to be around $160 per share based on discounted cash flow analysis.

• While there are geopolitical risks associated with investing in a Chinese-based company, the stock holds potential for growth if sentiment and risk decrease.