Analysts Say Alibaba's Lackluster Share Price Could Double In Face Of Company's Rising Earnings And Deal Driven Strategy
Portfolio Pulse from Daniel Harrison
Alibaba Group Holding Limited (NYSE:BABA) is gaining attention from investors due to its rising earnings and deal-driven strategy. Despite being over 50% below its 5-year ago valuation, analysts suggest it may be a good time to invest in the company. Alibaba's revenue was up 14% in the quarter ended June 30, and net income was 51% higher. The company's net margin of 14.6% is significantly higher than its US rival Amazon.com, Inc. (NASDAQ:AMZN). Alibaba's new CEO Eddie Wu plans to divest Alibaba’s subsidiaries to unlock the company’s cash and increase its investment in tech.
September 27, 2023 | 1:40 pm
News sentiment analysis
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NEGATIVE IMPACT
Alibaba's net margin is significantly higher than its US rival Amazon.
Alibaba's net margin is significantly higher than its US rival Amazon, which could make Amazon less attractive to investors.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Alibaba trades at a fraction of the price as does Nvidia Corporation, despite showing a similar profit margin.
Alibaba trades at a fraction of the price as does Nvidia Corporation, despite showing a similar profit margin, which could make Nvidia less attractive to investors.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Alibaba's net margin is in line with China tech stock market darlings Baidu.
Alibaba's net margin is in line with China tech stock market darlings Baidu, which could make Baidu equally attractive to investors.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Alibaba's net margin is in line with Tencent Holdings Ltd.
Alibaba's net margin is in line with Tencent Holdings Ltd, which could make Tencent equally attractive to investors.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Alibaba's rising earnings and deal-driven strategy are attracting investors. The company's net margin is significantly higher than its US rival Amazon.
Alibaba's rising earnings and deal-driven strategy are attracting investors. The company's net margin is significantly higher than its US rival Amazon, which makes it a good investment opportunity.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100