Updated thoughts on Alibaba (BABA US)
Hi James and the MM Team,
Would like to hear your new position on BABA trading around $173. Last view point was at $200.71.
Dylan
The Latest Q&A
Answer
Hi Dylan,
Alibaba (BABA) has been hammered over the last 18-months following Beijing’s cancellation of its Ant Group $US37bn float in late 2020, this was going to be the world’s largest ever IPO. When this was compounded by aggressive regulatory curbs this year by China towards many companies the China based internet goliath was been thrown into the proverbial “naughty corner”. MM believes both it and Tencent’s (700 HK) subsequent sell offs have been way too overdone and we believe they represent great value down towards $US150, Tencent (700 HK) appear to agree having announced a share buyback this week.
