What changed
$BABA — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $159.4B | EPS $0.62 vs $5.74 🔴
💡 Consensus priced in continued deterioration after the massive EPS miss, but we see the miss as transitory (likely write-downs or investment losses). Normalized EPS potential is $6-8, implying extreme undervaluation at current price of $80.
📉 Reward/risk: 2.0:1
🏢 Business Quality: 7/10 - Dominant e-commerce and cloud ecosystem with massive user base and cash flow generation, though facing regulatory and competitive headwinds in China.
📊 Valuation: cheap - Trading at a trailing P/E of 129x on reported EPS of $0.62, but on normalized EPS of $7.00, P/E is 11.4x, well below 5-year average of 20x.
🔮 Catalyst: Q2 FY2025 earnings report (next quarter)
💰 Entry: $80, stop $70, target $100
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/BABA0617