This Chinese e-commerce company is expected to grow at an annual rate of 29.8% over the next five years.
Alibaba Group Holding Limited (BABA)
From Cotton’s Technically Speaking
Alibaba Group Holding Limited (BABA) is the premier Chinese, and international on-line and mobile commerce company. It is the Amazon.com of China with a market cap of $339 billion. It operates through the following segments: Core Commerce, with platforms operating in retail and wholesale; Cloud Computing with Alibaba Cloud; Digital Media and Entertainment with the Youko Toudo and UC Browser business; and Innovation Initiatives and Others which includes businesses such as AutoNavi, Ding Talk, Tmall Genie and others.
The earnings estimate for fiscal Year ending 3/2019 is $5.21 per share with a PE Ratio of 25.31. Fiscal 2020’s earnings estimate is $6.73/share with a PE Ratio of 19.59.
We think the stock is a real bargain at this price and expect it to move up at least 50 within the next 6 months. We don’t own the stock.
Joseph Cotton, Cotton’s Technically Speaking, www.cottonstocks.net, 727-289-4436, December 26, 2018