What changed
$BABA — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $159.4B | EPS $0.62 vs $5.74 🔴
💡 Consensus implies persistent earnings degradation, but our analysis normalizes for one-time items (e.g., write-downs, fines) and estimates normalized EPS near $5.00-$6.00. The market is pricing in a permanent shift to sub-$3 EPS, which is overly pessimistic. The gap will close as subsequent quarters reveal normalizing profitability.
📉 Reward/risk: 2.57:1
🏢 Business Quality: 7/10 - Dominant Chinese e-commerce ecosystem with strong logistics and cloud moats, though challenged by regulatory headwinds and macro slowdown.
📊 Valuation: cheap - Based on normalized earnings: P/E ~17-21x vs. historical range 25-35x and peers (e.g., Tencent, JD.com); EV/Sales ~0.5x (assuming large net...
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/BABA0622