What changed
$BABA — AVOID 📊 | 6 MONTHS THESIS
🎯 latest | Rev $159.4B | EPS $0.62 vs $5.74 🔴
💡 Consensus may still hope for a quick recovery, but the earnings miss signals deeper issues: regulatory overhang, economic slowdown, and competition. The variant view is that EPS will remain depressed, and the stock is not as cheap as it appears on P/S due to low earnings power.
📉 Reward/risk: 0.1:1
🏢 Business Quality: 6/10 - Dominant Chinese e-commerce and cloud player but hampered by regulatory crackdown, slowing macro, and intense competition (PDD, JD, Douyin).
📊 Valuation: fair - PE of 17.4x is above historical median (14.8x), although P/S at 0.63x seems low; however, the denominator (earnings) is distorted by one-time...
🔮 Catalyst: Potential government stimulus or Ant Group IPO resolution
💰 Entry: $102.6, stop $82.06, target $100.52
📊 Our read: AVOID. Full analysis →
https://stockduty.xyz/s/BABA0624