Since peaking in
October 2020 at over $300 per share, Alibaba (Ticker: BABA) has lost approximately
one-third of its market value. Alibaba stock price is currently trading at the
$210-$220 range as of May 2021. The stock price caught my attention to take
further research of the company. I became attracted to the company due to the
fundamental and solid financial statement of the company.
Alibaba Group Holding Limited, through its subsidiaries,
provides online and mobile commerce businesses in the People's Republic of
China and internationally. It operates through four segments: Core Commerce,
Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives
and Others. The company operates Taobao Marketplace, a mobile commerce
destination; Tmall, a third-party online and mobile commerce platform for brands
and retailers; Alibaba Health Internet platforms for pharmaceutical and
healthcare products; Alimama, a monetization platform; 1688.com and
Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail
marketplace; Lazada, an e-commerce platform; and Tmall Global, an import
e-commerce platform.
On May 20, 2021, I decided to sell all my other positions in my portfolio and use the money to purchase Alibaba stock. I
bought 3200 shares of Alibaba stock at $216.20,
making this the most prominent position in my portfolio. As for now, my portfolio is very concentrated, holding only two stocks.
I know readers might ask why I sold all my other stock positions and holding
only two stocks now. In addition, Alibaba is not a stock that pays out a
dividend. This is because I see an excellent opportunity that makes me decide
to change my investing style. In this
article, I will explain why I'm heavy on Alibaba and why I think this is an
excellent investment. Moreover, I will talk about the recent earnings results, the stock
setup going forward, a valuation update, and the critical risks in the
investment.