by winston » Fri Apr 08, 2016 6:46 am
Growth Stocks to Buy: Alibaba Group Holding Ltd (BABA)
Since the market shot higher in early February, Alibaba Group Holding Ltd (BABA) has been one of the best big tech stock performers, now up 30% from its February low.
And best of all, BABA is still a buy.
Here’s what you need to know: Alibaba has a market cap of $200 billion, and within that business is the world’s (newly crowned) largest retailer with at least $482.1 billion in trailing 12-month gross merchandise sales. Notably, Wal-Mart Stores, Inc. (WMT) has a market cap of $215 billion.
The difference between WMT and BABA is the latter is expected to grow sales 30% in each of the next two years. So it will be the world’s largest retailer by a mile. However, BABA also own the “PayPal of China” with Ant Financial, reportedly worth $60 billion, and has made $18 billion in additional investments over the last few years that are starting to create value for BABA shareholders.
Collectively, Alibaba is a fast-growing, diversified technology company that also happens to be the world’s largest retailer, all bottled up in a $200 billion market capitalization. In other words, BABA is going higher, and there is a strong case to be made that long-term, Alibaba could challenge the likes of Alphabet Inc (GOOG, GOOGL) or Apple Inc. (AAPL) in worth due to the investments it is making and growth it is achieving.
Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"