Tuesday, May 9, 2023

Bull and Bear Case of Alibaba


source: lim and tan

Chart 1: Alibaba Weekly Chart

Alibaba (NYSE: BABA) is a Chinese e-commerce company that is listed on both the Hong Kong and US exchanges. 

Bull case for Alibaba is that it has a leading e-commerce marketplace business in China, a strong cloud infrastructure business, and other subsidiaries involved in logistics and digital media. Bulls also argue that Alibaba is poised to benefit from the economic reopening of China.

Bear case: On the other hand, the bear case for Alibaba is that it faces regulatory risks due to the Chinese government's crackdown on the business, which began in late 2020. The bearish argument is that Alibaba's competitive advantages may be eroded by regulatory actions, and that the stock may be a value trap.




source: aastocks.com


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