Yes I have a huge position in BABA. I originally started this post to simply upload a screen shot, but apparently this sub doesn’t allow pictures ? (Strange)
Let’s discuss BABA pre earnings.
Estimates are actually low, considering they had their largest singles day in history this past quarter and the ramp up to host the Olympics.
BABA has a $15B buy back program in place. We know they have already bought back $3.7B worth of shares at much higher prices. I would imagine they have doubled that purchase amount since NOV. will have a positive impact on EPS.
LAZADA – most people have NO clue BABA owns LAZADA. This is the Amazon of South East Asia and not only is it huge, but it’s growing at 81% per year. BABA said they plan for it to do $100B in GMV. To put that into perspective, Amazon does $600B. So just this teeny little segment of BABA that almost no one knows about, is set to do 1/6 of Amazon’s total business.
China has not only lowered their rates, while the US is raising rates, but they have also started multi billion dollar stimulus. I personally think there is going to be a bull run on China stocks. Look at their market compared to 2009 US market. It looks very similar.
Data Centers, Cloud Computing and now In House chip development all add to the reasons why I’m super heavy and super long on BABA shares.
I Believe markets move based on media cycles, so I buy on fundamentals when the media is negative. Anyone that speaks negative about BABA never mentions financials, they simply regurgitate main stream media talking points “China crack down” “potential delisting” it’s my view the media talking points will change to “China bull market” “US investors looking over seas for cheap stocks” but that will all come when BABA is already back over $200.
Just my train of thought, we shall see what happens after earnings. Good luck to all !
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