Alibaba - The Future Is Worth Much More

"When I am rejected by people. I get used to it" Jack Ma. 

Rejected. Rejected. Rejected. Alibaba stock and stock price is constantly rejected. 

Alibaba is a big, relentless, rapidly growing business. Get used to it.

How much longer will investors reject the stock and company. This rejection cannot go on forever, can it? 

It is amazing BABA closed in the $93 dollar range the first day of United States trading 2014.

Yesterday the stock closed at $142.82...so the stock has only gained a bit over 50% since first day US trading 4 years ago. I started investing in BABA during the summer of 2017. The price was very near to where we are today.

I like Alibaba the company. I like Jack Ma, the man and personality (I realize he is retiring). Please watch the video above, if you have not already seen it. It is awesome.  

I do worry about the sentiment around the stock. I worry that the rejection and volatility have become part of the DNA of the stock. It seems sentiment can linger for years with a stock. Take Amazon and Netflix, investors have come to accept judging Amazon on revenue growth and Netflix on subscriber growth. Nothing else matters. 

As a long term investor, I really like Alibaba. For the following reasons. All these potential drivers tie together quite nicely.

1. Growth 

The BABA growth rate is very impressive for a enormous company. They are in all the right places. E Commerce. Alibaba Cloud. Payments. Mobile. Digital Consumer Media.

Last quarter total revenue growth was 54%. Cloud Revenue growth 90%. 

2. Innovation

Some of the coolest innovation is coming out of China. Payments. AI. Automated retail. Facial recognition. Check out their Hema Grocery Store. And short video from Ant Financial.

3. Emerging Economies

Alibaba is growing rapidly and buying or investing in many businesses in Asia, South America, Africa and Russia. There is a lot of news on this subject. Bottom line, an investment in Alibaba will potentially give you exposure to many different emerging markets and Economies.

4. Ant Financial, Lazada and other Business ownership.

It seems every week there are articles of new business purchases and investments that Alibaba has made. Let's just look at the 2 huge businesses that can move the needle.

Ant Financial/Alipay. The largest Fintech company and digital payment platform in the world. Alibaba owns a 33% equity stake in Ant Financial (its a long story).

Lazada. Lazada is a huge E-commerce business based in Singapore. Alibaba completed an acquisition of the giant in 2018. The have operations in southeast Asia : Malaysia, Vietnam, Indonesia and Philippines. 

In summary, there is a lot to like. Thank you and have a great day.