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📈Is Alibaba DEAD? | An Analysis From a Chinese Stock Analyst | BABA Stock
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📈Is Alibaba DEAD? | An Analysis From a Chinese Stock Analyst | BABA Stock

Reasons for Alibaba's Stock Price Decline

In this video, a stock analyst based in China analyzes the reasons behind Alibaba's continuous decline in stock price. The analyst discusses concerns about China's slow recovery of consumption, uncertainty surrounding new changes, and challenges faced by Alibaba's main business.

Concerns About China's Slow Recovery of Consumption

  • According to the latest financial report, Alibaba's net profit grew four percent in the past year.
  • However, there are concerns about China's slow recovery of consumption after the outbreak of COVID-19.
  • Many investors are concerned about the uncertainty that new changes will bring to Alibaba.

Uncertainty Surrounding New Changes

  • The completion of each transaction depends on factors beyond Alibaba's control, including successful restructuring of assets and regulatory approvals.
  • There is a lot of uncertainty about how other spin-off companies will develop and contribute to Alibaba.

Challenges Faced by Main Business

  • The market share of Alibaba's main business is suffering from unprecedented competition and challenges.
  • Sub-businesses are not fully disclosed in earnings reports, leading to a lack of understanding among investors regarding their respective values.

Valuation Repair Potential

  • When sub-businesses such as AliCloud and Cainiao go public independently, there will be more comprehensive disclosures for outside investors.
  • If these business valuations are factored into overall business valuation, the resulting company value could be almost three times its current price.
  • Despite challenges faced by its main business, Alibaba has potential for valuation repair due to its many valuable sub-businesses.

Alibaba's Organizational Changes

This section discusses the purpose of Alibaba's high-level organizational change, the sequence of independent IPOs, and their performance and perspectives.

Purpose of Alibaba's High-Level Organizational Change

  • The purpose of Alibaba's top-level organizational changes is to give businesses greater independence to enhance competitiveness.
  • It is also to unite the business, lighten the load, shorten decision-making chains, avoid big company disease, and inject vitality into its own body.

Sequence of Independent IPOs

  • Early strategy is to list one at a time when it is right.
  • Hema Group is expected to go public in 6 or 12 months.
  • Cainiao Group expected to go public in 12 to 18 months.
  • Cloud Intelligence Group will be completely spun off and listed in the next 12 months by distributing dividends to shareholders.
  • Ali Cloud Intelligence plays a role of exploring and pioneering generative AI for the next 5 to 10 years.

Performance and Perspectives

  • Tmall and Cloud intelligence have larger business scales and room for development than most of Alphabet's subsidiaries.
  • Splitting up businesses accounting for them independently, and listing them independently motivates employees while having a certain impact on the industry as well.
  • Ali cloud has released Tongyitangyun big model but this is only in the first step of the Long March.
Video description

An Analysis From a Chinese Stock Analyst #alibabastock #babastock #chinesestocks Analysis Report: https://www.patreon.com/posts/unveiling-puzzle-85762642?utm_medium=clipboard_copy&utm_source=copyLink&utm_campaign=postshare_creator&utm_content=join_link If you like my analysis, you can subscribe to seeking alpha and you will have 2 weeks of free experience. And you can keep seeing my analysis reports. Invest like a bull: https://www.sahg6dtr.com/2CT4W5T/R74QP/ Public Email Letters (Learn Investment Strategy): https://sheilawanginvesting.substack.com/ Disclaimer: All opinions shared in this video are mine only. Please do your own due diligence. I work with companies and have affiliate/sponsorship relationships with them. Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results. 💰 Personal Finance Related Tags: stock market stocks everything money stocks to buy now stock sheilawanginvesting alibaba alibaba stock alibaba stock analysis alibaba stock prediction alibaba earnings call earnings call earnings earnings report baba stock baba baba earnings alibaba earnings baba earnings call baba stock analysis baba stock news baba stock analysis today baba stock prediction baba stock price baba stock earnings baba stock today alibaba stock news today alibaba stock 2023