E-Commerce Giant Alibaba's Stocks Draw Attention!

    E-Commerce Giant Alibaba's Stocks Draw Attention! The fact that Alibaba, which is called a technology company, usually concentrates on E-Commerce gains the appreciation of the consumer. Despite this, the company's stock has declined in recent months, following pressure from the Chinese government over monopoly concerns. Alibaba announced a loss of $ 836 million in the fourth fiscal quarter due to a $ 2,8 billion penalty imposed by the anti-monopoly regulator. The stock, on the other hand, was sold because it missed the corrected earnings estimates in the report. However, Alibaba continues to grow rapidly, with revenues rising to $ 24,4 billion, an increase of 40 %  in the quarter in question. Of course, it should be noted that the positive effects of the acquisition of supermarket operator Sun Art have not yet been reflected in the data. The achievement of Alibaba to these dimensions provides the company with a great competitive advantage. The annual gross product volume exceeds $ 1 trillion, making the company the world's largest e-commerce platform.

The fact that Alibaba, which is called a technology company, usually concentrates on E-Commerce gains the appreciation of the consumer.

In addition, the company; besides logistics, delivery, and digital entertainment, it also has other fast-growing businesses such as cloud computing, where sales increased by more than 50 % to $ 9,2 billion last year. It should not be forgotten that the strengthening of the Chinese economy is also a long-term growth opportunity for the company. Despite its growth rate and market opportunities, Alibaba is trading at a P / E ratio of just 21 after recent sales. This makes the company one of the best values ​​in the market. The biggest damage done by the Chinese government to the company was left behind with a $ 2,8 billion fine. Also, the stocks saw a one-third cut from the October peak.  

Source: The Motley Fool

 

You may also be interested in:

 

Elon Musk and the Peter Principle