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Alibaba Group Holding Limited (BABA)

NYSE - Nasdaq Real-time price. Currency in USD
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93.45+5.76 (+6.57%)
At close: 04:00PM EDT
93.50 +0.05 (+0.05%)
After hours: 04:01PM EDT
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  • R
    Robert
    G Sachs Trims BABA to $154, Rating Buy
  • R
    Robert
    Latest brokers rating BABA
    Jefferies│Buy│268->224
    Goldman Sachs│Buy│180->154
    BOCOM International│Buy│161->155
    UBS│Buy│136
    JPMorgan│Overweight│130
  • m
    ming
    Premier Li will announce major stimulus plan Monday: easier bank loans to business, electric car purchase incentives, lower mortgage debt ratio, less regulations on tech... may be too late for Q2 but it will help Q3 earnings
  • R
    Rich
    Lots of bears here on the board. Only a matter of time, perhaps a month before China lockdown ends. I reiterate, $140 by September. I don’t care if it goes back to $82. The Chinese stocks will outperform the U.S easily over the next few months
  • S
    Steve
    Revenue growth over past 2 years was 67%. Not bad for a dieing commie company during unprecedented regulations, lockdowns, fines, politics, and supply chain issues
  • T
    Terminal Gravity
    Very solid report in a difficult global environment. Held off on Q2 guidance due to uncertainty of lockdown impacts but everything I'm seeing says there may be upside to the numbers as online ordering has been exploding. Covered in Reuters article.

    Bottom line is the stock is grossly undervalued based on any financial metric you can use. With the headwinds many US tech companies are currently facing, BABA is a great option for investors looking for strong growth and profitability. Expecting to see BUY reiterations and/or price upgrades tomorrow from the Analysts.

    Love the update on the Buyback program as they continue to aggressively buy back stock with a lot of dry powder left to use. From their earnings report below:

    During the quarter ended March 31, 2022, we repurchased approximately 17.8 million of our ADSs (the equivalent of approximately 142.8 million of our ordinary shares) for approximately US$2.0 billion under our share repurchase program. In fiscal year 2022, we repurchased approximately 60.0 million of our ADSs (the equivalent of approximately 480.3 million of our ordinary shares) for approximately US$9.6 billion under our share repurchase program. In March 2022, we expanded our current share repurchase program from US$15billion to US$25 billion, which is effective through March 2024. As of March 31, 2022, we had approximately 21.4 billion ordinary shares (the equivalent of approximately 2.7 billion ADSs) outstanding.
  • m
    ming
    Wait for $98 to confirm this recovery rally. The volumn exceed the 90 day avewrage first time in a month! Like it ...
  • S
    Scott
    This comment is for everyone complaining over GAAP vs. Non-GAAP metrics:

    @acpennington Hi @acpennington. I appreciate your input. Companies report non-GAAP for a reason as a way to "look through the noise". However I will agree that some companies use non-GAAP metrics as a way to 'hide' what is really happening. This is not the case with Alibaba and many reputable companies. PLEASE NOTE that companies do NOT change the way they report non-GAAP metrics so tracking them quarter to quarter (YoY) is quite informative. It's not as though they report different 'funny numbers' on a whim!

    I think this may help shed some light on GAAP vs non-GAAP. Here is an example to show you why GAAP earnings are not useful in a company with large non-operating business-related investments.
    Example: Say you buy a house for $1M and are renting it out, let's assume it generates $50,000 a year in profit (after debt, taxes, maintenance, etc, ignoring depreciation for this example to make it comparable to equity stock investment).
    Every year you earn $50,000 (let's ignore rent adjustments and ignore real estate appreciation). Say in year 5 there is a housing market crash and your house is now 'worth' $500k. You have the same tenant (and let's say that they have a 20-year lease and that their lease is securitized by a 1,000 pound nugget of gold that they hold in their own secret vault). In this example you are 100% confident you will receive your $50,000 profit each year on your initial capital investment of $1M. GAAP earnings would have you report a net loss of $450,000 for the year ($50k profit from rent + $500k loss on home equity), due to mark to market pricing of investments. However, non-GAAP earnings would show a $50k earnings for the year. Notice how the 'value' of that underlying asset (the house) does not impact your +$50k cash profit one single bit. A capital gain/loss of the house will ONLY be accounted for during the year of sale of that asset in non-GAAP earnings. Since the $50k profit is tied to the house it only makes sense to adjust the 'value' of the underling asset when you no longer hold it (the $50k annual profit will also disappear with the sale of the house).

    Even companies like Berkshire have poor earnings this quarter since they have to report mark to market losses on investments they still hold. Warren Buffet and Munger both disagree with current GAAP standards but in this year's 2022 earnings call they even said that it's a tough problem to solve since industries are so different and having a standard across all of them is just not helpful.
  • A
    Alan C
    EPS and revenue beat. First profitable cloud year. Everything is looking good to me!
  • J
    Jack
    This marks the long time awaited reversal for Alibaba
  • R
    Richard
    GREEN AGAIN! BY EOD.. POOR SHORTERS HAHAHAHAHAHA You were warned.

    BABA results have been nothing but SPECTACULAR! #ROADTO300.
  • p
    p
    Baba will announce additional buyback by $5B-$10B on top of their already $25B buyback. They’ll do this because they have $75B cash equivalents available and can’t make any acquisitions due to Chinese regulators so buying back more own undervalued company is the only logical way to deploy the cash.
  • J
    Jesse
    Amazing that some people are legit selling below 100$ a share, BELOW! Hahahaha😂🤦
  • M
    Michael
    All the institutional buyers drop their price targets to scare retail investors. Then boom, COVID restrictions lift, the world let’s Russia finally win (inevitable), earnings continue to grow, baba enters more and more industries, blah blah blah… People with little money will have sold, baba and people with big money will have bought, price targets are raised and well yea. Hold your shares. Consider buying more shares. We’re playing high stakes poker drunk at 3am with a supercomputer.
  • F
    Filip
    I would not be suprised if SEC published today their China list with Baba with it. Just to be more impartial and not to influence anything. You know, fair guys whose main task is market and retail investor protection...
  • E
    Eore
    Show of comments - Who would participate in stock system that didn't involve government interference?
  • P
    Pia
    Very strong results given the circumstances. Massive stimulus being introduced and zero covid Will be abandoned at some point. Things are looking up for baba.
  • J
    Julius Caesar - Renaissance
    Cloud didn't grow fast - however if I hear correctly they spend up to 6 billion in new datacenters
    They spend about 3.X billion in buybacks in last 2 months. 12 billion USD still availible, they might keep buying back 3B per quarter would be interesting if prices go sideways.
  • j
    jojo
    Remember when we talked about the buyback program and how much float BABA could buy back? The past conversation was hovering around a share price of $110.

    For the month of April the avg share price of BABA was $97.

    For the month of May much lower than that.

    In that timeframe BABA used $3.4 bil to buy more of its ADR shares.

    1. The guys who said BABA wouldn't use the money were wrong. $13 bil used. $12 bil left to use until 2024.

    2. BABA managed to buy more shares than the initial calculations showed. Means bigger EPS for the share holders. I was hoping the share price would remain flat and falling. It did and I am happy the management did use their money.

    3. This is far from over. The share price could drop or stay low for longer. US economy likely will get into a recession which will drag Chinese stocks down as well. More time to buy back the stock at discount levels.

    So for long term holders this is and will be a win win situation. And this report had so many more positives to show.

    Really Excited. I have a feeling this was a great pick and it will show in a couple of years.
  • L
    LY
    BABA, one of the few stocks that up after earning release.

    Imagine when market recover, what would BABA worth?