2021-09-07 13:22:54
Since the beginning of the year, Alibaba (BABA) shares have dropped 37% , while Amazon shares have gained 11% over the same period. What should investors do? ...
Alibaba was fined $ 2.8 billion - the consequences of the actions of the Chinese regulator against the technology companies in the country.
Alibaba also supported (https://www.alibabagroup.com/en/news/article?news=p210903) China's "Shared Prosperity" program. Until 2025, $ 15.5 billion will be invested in the program - approximately 10% of current EBITDA annually.
Alibaba's score is half that of Amazon and is comparable to less-growing eBay, EV / EBITDA 2021:
Alibaba - 13.1 with a revenue growth rate of 30%,
eBay - 13 with an increase of 6%,
Amazon - 24.5, annual revenue growth rate of 30%.
Analysts at IFC Markets believe that the negative sentiment will gradually dissipate, and Chinese companies will catch up in terms of multiples to world peers.
Alibaba (BABA) share fair value is 290$ , upside potential is + 70% .
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