Wednesday, January 27, 2021

Review of Alibaba

 Alibaba stock (BABA) reached a peak of US$309 0n 19 Oct 2020. It dropped sharply by nearly 30% over the next two months to a low of $222. 


It has since recovered 19% of the loss to reach $276, which is 11% before its peak.

I have invested in the Alibaba stock in USA (BABA) and in Hong Kong (9988.HK) at an average cost below the current price. I am now seeing a gain.

There is a positive news about the IPO of Ant Financial (a subsidiary of Alibaba). This is the catalyst for the recent recovery.

https://finance.yahoo.com/news/ant-ipo-could-resume-once-095700640.html

I consider Alibaba to be an attractive stock as its price earning ratio is 28 times, compared to 98 times for Amazon. Both are leading global e-commerce companies. 

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