not vested
Alibaba (BABA)
The other key player in the Chinese e-commerce market is Alibaba (NYSE:BABA). Unlike JD and its $35 billion market cap though, BABA is a colossal giant, commanding a $420 billion market cap despite the stock’s recent slide.
Although it hasn’t been as bad as JD, Alibaba stock is trading at levels it hasn’t seen in some time. The biggest issue with Alibaba? Founder and CEO Jack Ma is hitting the exit, rattling investor confidence and creating concern over the company’s long-term future despite its dominant position in China.
At the moment, analyst expect insane revenue growth of 58% this year and almost 40% in 2019. On the earnings front, estimates call for 16.5% growth this year and more than 35% growth in 2019.
Remember, we’re heading into the key second half of the year and Single’s Day (for both JD and BABA) is coming up on Nov. 11.
These stocks tend to rally into that event, although it’s unclear when that will be the case this year — particularly if Chinese-U.S. tensions heat up as mid-terms approach just before that event.
BABA stock trades at just 21 times next year’s expected earnings. On a forward basis, that’s pretty cheap for a best-in-breed.
Source: Investor Place