koolgal
08-20
🌟🌟🌟I vote $Alibaba(BABA)$ $BABA-W(09988)$ will close Flat in the -5% to 5% zone.  Alibaba has missed Wall Street's Consensus EPS expectations for 4 consecutive previous quarters.  Today's numbers confirm that heavy capital expenditure into AI cloud infrastructure continues to compress immediate profit margins, giving bears plenty of ammunition to cap any explosive surges.

A "Very Red" crash is almost entirely off the table because the underlying top line volumes are exceptionally health.  Driven by an uncharacteristically strong double digit revenue expansion and massive domestic excitement surrounding its operating system integrations with $Apple(AAPL)$ , the long term turnaround is undeniably visible.

Alibaba's active buy back program stands at a huge USD 65 billion.  This acts as its defence shield.  If earnings wobble, management can buy back to support the stock.

Compared to its US peers, Alibaba is undervalued & a great Buy.

@Tiger_comments @TigerStars @Tiger_SG

Alibaba Slips 0.73% as Burry Bears Down — CEO Buys ~$4.98M: Who's Wrong?
Alibaba −0.73% in the U.S. Monday, while 09988 rose 0.71% in Hong Kong. The bear case, built on Burry's framework, is that the AI boom leaves Alibaba worse off as cloud and AI capex compresses margins. The bull case got a signal rather than an argument: the CEO bought about $4.98m of stock — real money, though against last week's HK$80bn placement it is a gesture, not a swing factor. One question underneath: is AI spend a margin drag or the entry ticket to cloud reacceleration? Follow the insider buy, or wait for this week's China ADR earnings?
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Comments

  • AndrewWalker
    08-20
    AndrewWalker
    The Apple integration angle matters more than people think. From a longer view, that is ecosystem stickiness getting rebuilt while the market keeps staring at margin compression lol
    • koolgal: 
      You are absolutely right 👍👍👍
    • koolgal: 
      Best of luck 🍀🍀🍀
    • koolgal: 
      Happy weekend 🏖️🏖️🏖️
    • koolgal: 
      May you have a winning week ahead 🌈🌈🌈💰💰💰
  • fuzzyx
    08-20
    fuzzyx
    That buyback shield sounds weaker than bulls think. Four straight EPS misses plus softer free cash flow makes flat feel generous here
    • koolgal: 
      Let's see what the new CEO can do for Apple.
    • koolgal: 
      May you have a winning week ahead 🌈🌈🌈💰💰💰
    • koolgal: 
      Best of luck 🍀🍀🍀
    • koolgal: 
      Happy weekend 🏖️🏖️🏖️
    • koolgal: 
      Yes that is true.
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