Alibaba (BABA)/ 9988 HK; Jack Ma 02 (May 16 - Apr 21)

[winston]

not vested

China’s antitrust regulators fine tech giants, said to weigh levying record penalty on Alibaba

On Thursday, the Wall Street Journal reported that China’s State Administration for Market Regulation is considering a fine on Alibaba that could surpass the US$975 million (S$1.3 billion) that Qualcomm paid in 2015 over anti-competitive practices.

The regulators are also considering whether the Chinese e-commerce giant should divest some assets unrelated to its main online-retailing business.

Source: ST

https://www.straitstimes.com/asia/east- ... baba-media

[winston]

Alibaba Group (BABA US)
Seeing Light At The End Of The Tunnel

After a bout of choppy trading in March, the stock rebounded almost 7% on 18 March
after going through a choppy ride since Nov 20.

The investment fraternity seemed to have priced in regulatory uncertainties after the resignation of Simon Hu (CEO of Ant Group) on 12 March, followed by regulatory pressure to divest of Alibaba’s stakes in its various digital and media businesses.

We opine its current share price (-1SD below mean) still offers an attractive entry point for investors.

Maintain BUY with an unchanged target price of US$355.00 (HK$345.00).

Source: UOBKH

https://research.uobkayhian.com/content ... 52bd2cf6f8

[winston]

vested

Buy This Stock On the Dip

by Matt McCall

When it comes to revenue, analysts expert 39% growth this year and 31% growth next year.

On the earnings front, estimates for this year and next year sit at 27% and 16.5%, respectively.

For just 19 times this year’s earnings estimates, BABA stock seems like a bargain considering its growth, assets and long-term opportunity.

Source: InvestorPlace

https://dailytradealert.com/2021/03/31/ ... n-the-dip/

[behappyalways]

Beijing Halts Enrollment At Jack Ma's Business School As Big-Tech Crackdown Continues
https://www.zerohedge.com/technology/be ... -continues

[winston]

Other shoes may drop for Ma

by Mary Ma

Has the last shoe dropped in the case of Alibaba after Beijing imposed a record fine of 18.2 billion yuan (HK$21.6 billion) on the mainland internet giant?

It's an enormous sum, equivalent to 4 percent of Alibaba's revenue in 2019, or one third of its earnings for the last quarter.

As of January, Ma's stake was known to have reduced to 4.8 percent, which is reportedly less than half that of co-founder Joseph Tsai Chung-hsin.

Alibaba's largest shareholder is Japanese investor Softbank. Mathematically, Softbank was hit the most in light of its 25 percent stake.

Source: The Standard

https://www.thestandard.com.hk/section- ... rop-for-Ma

[winston]

not vested

Brokers' Latest Ratings, TPs on BABA-SW (09988.HK) Post Concluded Antitrust Case (Table)

Brokers│Ratings│TPs (HK$)
CSC│Buy│333
Jefferies│Buy│328
Credit Suisse│Outperform│304
GF Sec│Buy│298.89
CITIC Sec│Buy│-

Brokers│Views
CSC│Penalty poses limited long-term operation impacts
Jefferies│Penalty clears antitrust uncertainties, brings fresh start
Nomura│Market may focus on healthy e-commerce business growth next 2-3 quarters
JPMorgan│May impact 2022E total turnover and net profit by 2%/ 4%
Credit Suisse│Clears antitrust uncertainties, anticipates revenue breakthrough
Morgan Stanley│Penalty may clear uncertainties; focus back onto fundamentals
CITIC Sec│Initially clears business uncertainties; may focus more on social value, tech innovation
GF Sec│Goes on stepping up investments in underlying businesses

Source: AAStocks Financial News

[winston]

not vested

Buy, Sell or Avoid Alibaba After Its Record $2.8 Billion Fine?

by BRET KENWELL

It was rejected by the March high at $242.79 and key resistance zone between $240 and $242. At the top of the range also sits the 50-day moving average.

If shares are rejected from this area and fail to hold the 10-week moving average, look for a move below Monday’s low and a possible retest of the $230 area.

If Alibaba stock closes above $243, it puts the 100-day and 21-week moving averages in play. Above that opens the door to the gap-fill level up near $262.

For now, keep an eye on $243.

Source: The Street

https://www.thestreet.com/investing/ali ... on+Fine%3F

[winston]

not vested

Removal of a major overhang

China's State Administration for Market Regulation imposed a fine of Rmb18.228bn on Alibaba Group for monopoly conduct for implementing an "exclusive dealing agreements".

Alibaba will open up more and more free services for merchants and will develop more measures to improve merchant training to help them grow.

We believe the fine will not materially affect Alibaba’s fundamentals and will reduce market uncertainty about Alibaba’s policy risk.

We consider this to be a good opportunity to buy the stock. Reiterate Add. TP HK$341.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 9D86D86AD8

[winston]

not vested

Alibaba Group (BABA US)

SAMR Penalty Decision Finally Settled; Healthier Growth; Investment Continues

The penalty decision by SAMR has ended the uncertainty for Alibaba.

It is now required to submit reports on self-regulation to SAMR for three consecutive years.

Meanwhile, Alibaba will continue to focus on strengthening value creation and experience improvement for customers.

In FY22, it will continue to invest in new initiatives and lower-tier cities (via various verticals).

Maintain BUY with a lower target price of US$334.00 (HK$325.00).

Source: UOBKH

https://research.uobkayhian.com/content ... 7a1bcb6bdf

[behappyalways]

Charlie Munger Prefers Alibaba Stock to Treasury Bills. Here’s Why.
https://www.barrons.com/articles/berksh ... eid=yhoof2