What changed
$BABA — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $159.4B | EPS $0.62 vs $5.74 🔴
💡 Consensus modeled GAAP EPS of $5.74 for the fiscal period, reflecting continued recovery, but actual $0.62 shocked the market due to $5.8B in impairment charges. The market extrapolated this as structural decline, ignoring that revenue of $159.4B met expectations and non-GAAP EPS likely grew.
📉 Reward/risk: 2.17:1
🏢 Business Quality: 7/10 - Dominant Chinese e-commerce and cloud ecosystem with strong network effects, though under regulatory and competitive pressure; historically high returns on capital but recent missteps in physical retail lowered efficiency.
📊 Valuation: cheap - triangulating: adjusted P/E (ex-impairment) 15–17x vs. 5-year historical median 22x and peer Tencent 18x; EV/EBITDA 10x vs.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/BABA0620