What changed
$BABA — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $159.4B | EPS $0.62 vs $5.74 🔴
💡 Consensus expects EPS to remain depressed and revenue growth to stall, but our variant view is that core commerce margins will rebound sharply as Alibaba exits low-margin direct sales and focuses on high-value marketplace services.
📉 Reward/risk: 2.48:1
🏢 Business Quality: 7/10 - Dominant e-commerce ecosystem with sticky user base, but faces intense competition and regulatory headwinds; cloud business is a durable asset with margin expansion potential.
📊 Valuation: cheap - Trading at 19x normalized P/E vs. 5-year median of 22x and sector median 24x; EV/Sales of 1.8x vs.
🔮 Catalyst: Q2 2024 earnings report (August 2024) showing core margin expansion and sequential revenue growth; management guidance raise on cost-out plan
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/BABA0615