Indu personal page - To The Moon

Indu

Indu

No personal profile

9Follow

4Followers

0Topic

0Badge

2024-08-01

Serv will be up another 18%

2022-08-29

Like

Sorry, the original content has been removed

2022-08-26

Good

Sorry, the original content has been removed

2022-08-02

Good

Sorry, the original content has been removed

2022-08-02

Oh

Alibaba: Be Greedy When Others Are Fearful

2022-05-13

Super

Rivian Reaffirms Production Outlook despite Supply-Chain Snags, Boosting Stock

Go to Tiger App to see more news

{"i18n":{"language":"en_US"},"userPageInfo":{"id":"4100170149003520","uuid":"4100170149003520","gmtCreate":1637071595217,"gmtModify":1722477339330,"name":"Indu","pinyin":"indu","introduction":"","introductionEn":"","signature":"","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","hat":null,"hatId":null,"hatName":null,"vip":1,"status":2,"fanSize":4,"headSize":9,"tweetSize":21,"questionSize":0,"limitLevel":999,"accountStatus":4,"level":{"id":1,"name":"萌萌虎","nameTw":"萌萌虎","represent":"呱呱坠地","factor":"评论帖子3次或发布1条主帖（非转发）","iconColor":"3C9E83","bgColor":"A2F1D9"},"themeCounts":0,"badgeCounts":0,"badges":[],"moderator":false,"superModerator":false,"manageSymbols":null,"badgeLevel":null,"boolIsFan":false,"boolIsHead":false,"favoriteSize":0,"symbols":null,"coverImage":null,"realNameVerified":"success","userBadges":[{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.08.13","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001},{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.29","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1102},{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.29","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.29","exceedPercentage":"93.55%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},{"badgeId":"44212b71d0be4ec88898348dbe882e03-3","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"President Tiger","description":"The transaction amount of the securities account reaches $1,000,000","bigImgUrl":"https://static.tigerbbs.com/fbeac6bb240db7da8b972e5183d050ba","smallImgUrl":"https://static.tigerbbs.com/436cdf80292b99f0a992e78750ac4e3a","grayImgUrl":"https://static.tigerbbs.com/506a259a7b456f037592c3b23c779599","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.22","exceedPercentage":"93.64%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1101}],"userBadgeCount":5,"currentWearingBadge":null,"individualDisplayBadges":null,"crmLevel":11,"crmLevelSwitch":0,"location":null,"starInvestorFollowerNum":0,"starInvestorFlag":false,"starInvestorOrderShareNum":0,"subscribeStarInvestorNum":0,"ror":null,"winRationPercentage":null,"showRor":false,"investmentPhilosophy":null,"starInvestorSubscribeFlag":false},"baikeInfo":{},"tab":"post","tweets":[{"id":333531192770800,"gmtCreate":1722473517651,"gmtModify":1722473522502,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4100170149003520","authorIdStr":"4100170149003520"},"themes":[],"htmlText":"Serv will be up another 18%","listText":"Serv will be up another 18%","text":"Serv will be up another 18%","images":[{"img":"https://community-static.tradeup.com/news/64f18606d393f82a833138fb4c4658c5","width":"825","height":"1290"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333531192770800","isVote":1,"tweetType":1,"viewCount":1667,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":9997828762,"gmtCreate":1661782110058,"gmtModify":1676536577749,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4100170149003520","authorIdStr":"4100170149003520"},"themes":[],"htmlText":"Like","listText":"Like","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9997828762","repostId":"2262162956","repostType":2,"isVote":1,"tweetType":1,"viewCount":1595,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9995828906,"gmtCreate":1661444814208,"gmtModify":1676536520057,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4100170149003520","authorIdStr":"4100170149003520"},"themes":[],"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9995828906","repostId":"2262958683","repostType":2,"isVote":1,"tweetType":1,"viewCount":1722,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9906018761,"gmtCreate":1659452893956,"gmtModify":1705980509762,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4100170149003520","authorIdStr":"4100170149003520"},"themes":[],"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9906018761","repostId":"2256664675","repostType":2,"isVote":1,"tweetType":1,"viewCount":1629,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9906037990,"gmtCreate":1659452254212,"gmtModify":1705980500393,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4100170149003520","authorIdStr":"4100170149003520"},"themes":[],"htmlText":"Oh","listText":"Oh","text":"Oh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9906037990","repostId":"1188690484","repostType":4,"repost":{"id":"1188690484","kind":"news","pubTimestamp":1659454673,"share":"https://ttm.financial/m/news/1188690484?lang=en_US&edition=fundamental","pubTime":"2022-08-02 23:37","market":"us","language":"en","title":"Alibaba: Be Greedy When Others Are Fearful","url":"https://stock-news.laohu8.com/highlight/detail?id=1188690484","media":"Seeking Alpha","summary":"SummaryAlibaba has grown at a 5-year CAGR of more than 42%, but the company's stock is trading at a ","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba has grown at a 5-year CAGR of more than 42%, but the company&#39;s stock is trading at a PE of about x17.</li><li>The stock is down about 70% from ATH and now trades at very attractive risk/reward levels.</li><li>Personally, I see more than 50% upside for BABA stock, as I calculate the company&#39;s fair value with a residual earnings model.</li></ul><p><b>Thesis</b></p><p>I am very bullish on Alibaba (NYSE:BABA) stock. I strongly believe that the market has priced in too much negativity and pessimism as compared to reality and investors are well advised to follow one of Buffett&#39;s key maxims:</p><blockquote>Be greedy when others are fearful.</blockquote><p>Alibaba has grown at a 5-year CAGR of more than 42%, but the company&#39;s stock is trading at a PE of about x17. This indicates a clear undervaluation.</p><p>Of course, I understand that investors are worried about a potential ADR delisting, slowing economy and crackdown on internet/tech companies. However, just like a bull market tops on the most bullish conditions, a bear market bottoms on the most bearish conditions. While investors should study and understand the risks, I personally believe that Alibaba stock will rebound strongly from current price levels of below $100/share.</p><p>Personally, I see more than 50% upside for BABA stock, as I calculate the company&#39;s fair value with a residual earnings model anchored on fundamentals and analyst consensus estimates. My target price is $133.92.</p><p><b>A Best-In-Class Company</b></p><p>Alibaba is one of the biggest e-commerce companies in the world. The company operates three main shopping sites Taobao, Tmall and Alibaba.com, which cumulatively serve some 828 million monthly active buyers (fiscal year ending March 31, 2021).</p><p>Alibaba also has stakes in multiple innovative internet/technology businesses such as Youku (video entertainment), Pony.Ai (Autonomous Driving) and most notably Ant Group (The world&#39;s biggest financial service company). Alipay serves almost the entire population in China. The platform has 1.3 billion users and 80 million merchants. Notably, the total payment volume of Alipay was more than $19 trillion in 2021.</p><p>Moreover, Alibaba is a dominant force in China&#39;s cloud market with about37% market share. China&#39;s cloud market is expected to grow at a 4-year CAGR of more than 25%, reaching $85 billion in 2026. As the market leader in China, Alibaba is poised to benefit from this super-charged cloud-growth. Cloud is also a business vertical where the company should enjoy government tailwind, as the Chinese Communist Party is actively supporting digitalization efforts of the economy and has made cloud development a key-priority in the party&#39;s5-year development plan.</p><p><b>Bullish Financials</b></p><p>In the past financial year, the Alibaba Group generated total revenues of about $134.5 billion and recorded an operating income of about $15 billion. Most notably in the past five years, from March 2017 to March 2022, Alibaba has grown at an unbelievable 5-year CAGR of 42%. For reference, this is almost double the growth rate of Amazon, which grew at a 5-year CAGR of 22% CAGR over the same period. Alibaba closed the fiscal year 2021 with 9.8 billion of net-income available to common shareholders.</p><p>Alibaba&#39;sbalance sheet is very strong: As of March 2022, the company recorded $71.7 billion of cash and cash equivalents and only $27.85 of total financial debt. This makes Alibaba a net-creditor of about $43 billion -- which is 17% of the company&#39;s market capitalization. Moreover, Alibaba&#39;s business operations, despite the strong growth, are cash-accretive. In fiscal 2021, the company generated cash from operations of $22.5 billion. Under these circumstances it should come to no surprise that the company announced a $25 billion share-buyback program, more than 10% of the outstanding shares) in March 2022.</p><p>Alibaba will announce earnings for the quarter from April to end of June on August 4th before the market open. Analyst consensus expects total revenues of $30.21 billion and EPS of $1.56.</p><p><b>The Buying Opportunity</b></p><p>Despite the strong business fundamentals, Alibaba stock suffered a spectacular sell-off. BABA shares are down about 70% from ATH as the company was pressured by multiple headwinds: ADR delisting fears, as slowing economy , Covid-19 lockdowns and an aggressive regulatory crackdown that started with the cancellation of the Ant Group IPO in November 2020.</p><p><img src=\"https://static.tigerbbs.com/c01e6eab7204bcc90b5af9aa0d87ac85\" tg-width=\"640\" tg-height=\"232\" referrerpolicy=\"no-referrer\"/></p><p>Seeking Alpha</p><p>Alibaba is a quality company, and the stock&#39;s undervaluation is no secret to investors. The key-question is: is the worst behind, and can investors safely invest in Alibaba stock?</p><p>I strongly believe that a safe investment does not exist. In my opinion, every investment opportunity must be judged as a function of its price. And the lower the price, the less risky an investment becomes. Thus, investing is a question of risk/reward. Given Alibaba&#39;s extremely depressed valuation - now the company&#39;s stock is trading at a PE of about x17- I argue an investment is justified.</p><p>Moreover, there are signs that all of Alibaba&#39;s headwinds are easing and the negativity surrounding the stock has peaked. China has on multiple occasions tried to communicate to investors that the internet/technology crackdown is coming to an end and is actively supporting the healthy expansion of digital platform economies.</p><p>In addition, China has vowed to push more fiscal economic support- with a special focus on digitalization. While western economies are hawkish on fiscal and monetary stimulus - ending a decade long easing cycle, China is one of the few economies that appears to start a new stimulus cycle.</p><p>Analysts agree with the bullish thesis. In general, analysts are very bullish on Alibaba stock. Based on ratings of 44 analysts, 33 analysts give a Strong Buy rating, 8 are Buy rated and 3 assign a Hold recommendation. There is no Sell or Strong Sell rating. The average price target is $155.47/share, indicating more than 70% upside.</p><p><img src=\"https://static.tigerbbs.com/8fa3c940aeeed4780c87b1ca71bdb180\" tg-width=\"640\" tg-height=\"228\" referrerpolicy=\"no-referrer\"/></p><p>Seeking Alpha</p><p><b>Residual Earnings Valuation</b></p><p>Let us now look at the valuation. What could be a fair per-share value for Alibaba stock? To answer the question, I have constructed a Residual Earnings framework and anchor on the following assumptions:</p><ul><li>To forecast EPS, I anchor on consensus analyst forecast as available on the Bloomberg Terminal &#39;till 2025. In my opinion, any estimate beyond 2025 is too speculative to include in a valuation framework. But for 2-3 years, analyst consensus is usually quite precise.</li><li>To estimate the cost of capital, I use the WACC framework. I model a three-year regression against the Hang Seng to find the stock&#39;s beta. For the risk-free rate, I used the U.S. 10-year treasury yield as of July 22nd, 2022. My calculation indicates a fair WACC of about 9.8%. I adjust upward to 12% in order to reflect the company&#39;s idiosyncratic market risk.</li><li>To derive Baidu&#39;s tax rate, I extrapolate the 3-year average effective tax-rate from 2019, 2020 and 2021.</li><li>For the terminal growth rate, I apply expected nominal GDP growth plus one percentage point to reflect a favorable growth outlook for Alibaba&#39;s high-potential initiatives</li><li>I do not model any share buyback further supporting a conservative valuation.</li></ul><p>Based on the above assumptions, my calculation returns a base-case target price for Alibaba of $133.92/share, implying material upside of more than 50%.</p><p><img src=\"https://static.tigerbbs.com/b7cb860aca7fa48ef2afe7e265d3effa\" tg-width=\"640\" tg-height=\"229\" referrerpolicy=\"no-referrer\"/></p><p>Analyst Consensus EPS; Author&#39;s Calculation</p><p>I understand that investors might have different assumptions with regards to Alibaba&#39;s required return and terminal business growth. Thus, I also enclose a sensitivity table to test varying assumptions. For reference, red-cells imply an overvaluation as compared to the current market price, and green-cells imply an undervaluation. Notably, all tested combinations imply an undervaluation!</p><p><img src=\"https://static.tigerbbs.com/62ba3323a1f09e75477921298d84cbf8\" tg-width=\"640\" tg-height=\"154\" referrerpolicy=\"no-referrer\"/></p><p>Analyst Consensus EPS; Author&#39;s Calculation</p><p><b>Investment Risks</b></p><p>Investors should be aware of the following downside risks that might cause Alibaba stock to materially deviate from my base-case target price of $133.92/share:</p><p>First, the economy is currently pressured by multiple headwinds including inflation, real-estate crisis and COVID-19 lockdowns. If the economy would slow more than what is expected and priced in, investors should adjust expectations for Alibaba&#39;s short/mid-term business monetization accordingly.</p><p>Secondly, China&#39;s internet/tech companies are strongly exposed to regulatory risk. While the worst seems to be behind us, the elevated risk exposure persists -- and will arguably never completely fade.</p><p>Third, much of BABA&#39;s share price volatility is currently driven by investor sentiment towards Chinese ADRs and risk assets. Thus, BABA stock price might show strong price volatility even though the company&#39;s business fundamentals remain unchanged.</p><p><b>Conclusion</b></p><p>Alibaba stock is down 70% from ATH, but the company remains a global powerhouse with enormous long-term potential. Trading at a PE of below x17, despite growing like a start-up, I argue Alibaba&#39;s sell-off could offer long-term focused investors, that can stomach short term share-price volatility, a generational buying opportunity.</p><p>Personally, I see more than 50% upside for BABA stock, despite cautious and conservative valuation assumptions. Strong Buy.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba: Be Greedy When Others Are Fearful</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba: Be Greedy When Others Are Fearful\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-08-02 23:37 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4528176-alibaba-be-greedy-when-others-fearful><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba has grown at a 5-year CAGR of more than 42%, but the company's stock is trading at a PE of about x17.The stock is down about 70% from ATH and now trades at very attractive risk/reward ...</p>\n\n<a href=\"https://seekingalpha.com/article/4528176-alibaba-be-greedy-when-others-fearful\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W"},"source_url":"https://seekingalpha.com/article/4528176-alibaba-be-greedy-when-others-fearful","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1188690484","content_text":"SummaryAlibaba has grown at a 5-year CAGR of more than 42%, but the company's stock is trading at a PE of about x17.The stock is down about 70% from ATH and now trades at very attractive risk/reward levels.Personally, I see more than 50% upside for BABA stock, as I calculate the company's fair value with a residual earnings model.ThesisI am very bullish on Alibaba (NYSE:BABA) stock. I strongly believe that the market has priced in too much negativity and pessimism as compared to reality and investors are well advised to follow one of Buffett's key maxims:Be greedy when others are fearful.Alibaba has grown at a 5-year CAGR of more than 42%, but the company's stock is trading at a PE of about x17. This indicates a clear undervaluation.Of course, I understand that investors are worried about a potential ADR delisting, slowing economy and crackdown on internet/tech companies. However, just like a bull market tops on the most bullish conditions, a bear market bottoms on the most bearish conditions. While investors should study and understand the risks, I personally believe that Alibaba stock will rebound strongly from current price levels of below $100/share.Personally, I see more than 50% upside for BABA stock, as I calculate the company's fair value with a residual earnings model anchored on fundamentals and analyst consensus estimates. My target price is $133.92.A Best-In-Class CompanyAlibaba is one of the biggest e-commerce companies in the world. The company operates three main shopping sites Taobao, Tmall and Alibaba.com, which cumulatively serve some 828 million monthly active buyers (fiscal year ending March 31, 2021).Alibaba also has stakes in multiple innovative internet/technology businesses such as Youku (video entertainment), Pony.Ai (Autonomous Driving) and most notably Ant Group (The world's biggest financial service company). Alipay serves almost the entire population in China. The platform has 1.3 billion users and 80 million merchants. Notably, the total payment volume of Alipay was more than $19 trillion in 2021.Moreover, Alibaba is a dominant force in China's cloud market with about37% market share. China's cloud market is expected to grow at a 4-year CAGR of more than 25%, reaching $85 billion in 2026. As the market leader in China, Alibaba is poised to benefit from this super-charged cloud-growth. Cloud is also a business vertical where the company should enjoy government tailwind, as the Chinese Communist Party is actively supporting digitalization efforts of the economy and has made cloud development a key-priority in the party's5-year development plan.Bullish FinancialsIn the past financial year, the Alibaba Group generated total revenues of about $134.5 billion and recorded an operating income of about $15 billion. Most notably in the past five years, from March 2017 to March 2022, Alibaba has grown at an unbelievable 5-year CAGR of 42%. For reference, this is almost double the growth rate of Amazon, which grew at a 5-year CAGR of 22% CAGR over the same period. Alibaba closed the fiscal year 2021 with 9.8 billion of net-income available to common shareholders.Alibaba'sbalance sheet is very strong: As of March 2022, the company recorded $71.7 billion of cash and cash equivalents and only $27.85 of total financial debt. This makes Alibaba a net-creditor of about $43 billion -- which is 17% of the company's market capitalization. Moreover, Alibaba's business operations, despite the strong growth, are cash-accretive. In fiscal 2021, the company generated cash from operations of $22.5 billion. Under these circumstances it should come to no surprise that the company announced a $25 billion share-buyback program, more than 10% of the outstanding shares) in March 2022.Alibaba will announce earnings for the quarter from April to end of June on August 4th before the market open. Analyst consensus expects total revenues of $30.21 billion and EPS of $1.56.The Buying OpportunityDespite the strong business fundamentals, Alibaba stock suffered a spectacular sell-off. BABA shares are down about 70% from ATH as the company was pressured by multiple headwinds: ADR delisting fears, as slowing economy , Covid-19 lockdowns and an aggressive regulatory crackdown that started with the cancellation of the Ant Group IPO in November 2020.Seeking AlphaAlibaba is a quality company, and the stock's undervaluation is no secret to investors. The key-question is: is the worst behind, and can investors safely invest in Alibaba stock?I strongly believe that a safe investment does not exist. In my opinion, every investment opportunity must be judged as a function of its price. And the lower the price, the less risky an investment becomes. Thus, investing is a question of risk/reward. Given Alibaba's extremely depressed valuation - now the company's stock is trading at a PE of about x17- I argue an investment is justified.Moreover, there are signs that all of Alibaba's headwinds are easing and the negativity surrounding the stock has peaked. China has on multiple occasions tried to communicate to investors that the internet/technology crackdown is coming to an end and is actively supporting the healthy expansion of digital platform economies.In addition, China has vowed to push more fiscal economic support- with a special focus on digitalization. While western economies are hawkish on fiscal and monetary stimulus - ending a decade long easing cycle, China is one of the few economies that appears to start a new stimulus cycle.Analysts agree with the bullish thesis. In general, analysts are very bullish on Alibaba stock. Based on ratings of 44 analysts, 33 analysts give a Strong Buy rating, 8 are Buy rated and 3 assign a Hold recommendation. There is no Sell or Strong Sell rating. The average price target is $155.47/share, indicating more than 70% upside.Seeking AlphaResidual Earnings ValuationLet us now look at the valuation. What could be a fair per-share value for Alibaba stock? To answer the question, I have constructed a Residual Earnings framework and anchor on the following assumptions:To forecast EPS, I anchor on consensus analyst forecast as available on the Bloomberg Terminal 'till 2025. In my opinion, any estimate beyond 2025 is too speculative to include in a valuation framework. But for 2-3 years, analyst consensus is usually quite precise.To estimate the cost of capital, I use the WACC framework. I model a three-year regression against the Hang Seng to find the stock's beta. For the risk-free rate, I used the U.S. 10-year treasury yield as of July 22nd, 2022. My calculation indicates a fair WACC of about 9.8%. I adjust upward to 12% in order to reflect the company's idiosyncratic market risk.To derive Baidu's tax rate, I extrapolate the 3-year average effective tax-rate from 2019, 2020 and 2021.For the terminal growth rate, I apply expected nominal GDP growth plus one percentage point to reflect a favorable growth outlook for Alibaba's high-potential initiativesI do not model any share buyback further supporting a conservative valuation.Based on the above assumptions, my calculation returns a base-case target price for Alibaba of $133.92/share, implying material upside of more than 50%.Analyst Consensus EPS; Author's CalculationI understand that investors might have different assumptions with regards to Alibaba's required return and terminal business growth. Thus, I also enclose a sensitivity table to test varying assumptions. For reference, red-cells imply an overvaluation as compared to the current market price, and green-cells imply an undervaluation. Notably, all tested combinations imply an undervaluation!Analyst Consensus EPS; Author's CalculationInvestment RisksInvestors should be aware of the following downside risks that might cause Alibaba stock to materially deviate from my base-case target price of $133.92/share:First, the economy is currently pressured by multiple headwinds including inflation, real-estate crisis and COVID-19 lockdowns. If the economy would slow more than what is expected and priced in, investors should adjust expectations for Alibaba's short/mid-term business monetization accordingly.Secondly, China's internet/tech companies are strongly exposed to regulatory risk. While the worst seems to be behind us, the elevated risk exposure persists -- and will arguably never completely fade.Third, much of BABA's share price volatility is currently driven by investor sentiment towards Chinese ADRs and risk assets. Thus, BABA stock price might show strong price volatility even though the company's business fundamentals remain unchanged.ConclusionAlibaba stock is down 70% from ATH, but the company remains a global powerhouse with enormous long-term potential. Trading at a PE of below x17, despite growing like a start-up, I argue Alibaba's sell-off could offer long-term focused investors, that can stomach short term share-price volatility, a generational buying opportunity.Personally, I see more than 50% upside for BABA stock, despite cautious and conservative valuation assumptions. Strong Buy.","news_type":1,"symbols_score_info":{"BABA":0.9,"09988":0.9}},"isVote":1,"tweetType":1,"viewCount":1612,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9064774995,"gmtCreate":1652391957017,"gmtModify":1676535088678,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4100170149003520","authorIdStr":"4100170149003520"},"themes":[],"htmlText":"Super","listText":"Super","text":"Super","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9064774995","repostId":"2234629939","repostType":2,"repost":{"id":"2234629939","kind":"highlight","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1652310016,"share":"https://ttm.financial/m/news/2234629939?lang=en_US&edition=fundamental","pubTime":"2022-05-12 07:00","market":"us","language":"en","title":"Rivian Reaffirms Production Outlook despite Supply-Chain Snags, Boosting Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2234629939","media":"Dow Jones","summary":"Rivian Automotive Inc. stock rose nearly 6% in after-hours trading Wednesday after the electric-vehi","content":"<html><head></head><body><p>Rivian Automotive Inc. stock rose nearly 6% in after-hours trading Wednesday after the electric-vehicle maker kept its 2022 production outlook intact and tried to assure investors about it was on the right track amid a recent selloff of its shares.</p><p><img src=\"https://static.tigerbbs.com/1d0d25609d3c6a81a4f790f13b923483\" tg-width=\"877\" tg-height=\"617\" width=\"100%\" height=\"auto\"/></p><p>&#34;We couldn&#39;t be more confident in the path that lies head,&#34; Chief Executive RJ Scaringe told investors on a call after the first-quarter results.</p><p>Rivian has $17 billion in cash, the capacity to build 150,000 vehicle units, and sees &#34;incredible demand&#34; for its EVs, including a cheaper vehicle in the future, &#34;ensuring we are positioning ourselves for significant growth in the coming years,&#34; Scaringe said.</p><p>Rivian made 2,553 vehicles in the quarter and delivered 1,227, generating $95 million in revenue, the company said.</p><p>Analysts polled by FactSet expected the EV maker to report an adjusted loss of $1.49 a share on sales of $133 million.</p><p>The gap between produced and delivered vehicles in the quarter was strictly on timing, not quality issues, Scaringe said.</p><p>Rivian has taken a page from Tesla Inc. and also sells its vehicles directly to consumers, bypassing dealerships.</p><p>The company has worked with suppliers so they can ramp their production and Rivian can meet its demand, Scaringe said. Suppliers have &#34;leaned in,&#34; and that was in part what gave the company the confidence to keep its production goals, the CEO said.</p><p>&#34;We remain focused on ramping production throughout 2022,&#34; the company said in its letter to shareholders.</p><p>Rivian went on to describe production problems that included ongoing shortages of semiconductor chips as well as other parts, stoppages and bottlenecks.</p><p>Supply-chain &#34;constraints&#34; will continue to limit production, but based on the &#34;latest understanding of the supply-chain environment,&#34; Rivian reaffirmed its guidance to make about 25,000 vehicles this year.</p><p>The EV maker said it had more than 90,000 preorders for its electric vehicles from consumers in the U.S. and Canada, including 10,000 orders after it increased model prices in March that averaged more than $93,000 apiece.</p><p>Rivian said it ended the quarter with about $17 billion in cash and equivalents.</p><p>The stock ended the regular trading day down 9.6% to a record-low close of $20.60, after news that Ford Motor Co. and other major backers had sold shares as soon as the post-IPO lockup period ended.</p><p>The stock is down 80% so far this year, compared with losses of around 17% for the S&amp;P 500 index .</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Rivian Reaffirms Production Outlook despite Supply-Chain Snags, Boosting Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRivian Reaffirms Production Outlook despite Supply-Chain Snags, Boosting Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2022-05-12 07:00</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Rivian Automotive Inc. stock rose nearly 6% in after-hours trading Wednesday after the electric-vehicle maker kept its 2022 production outlook intact and tried to assure investors about it was on the right track amid a recent selloff of its shares.</p><p><img src=\"https://static.tigerbbs.com/1d0d25609d3c6a81a4f790f13b923483\" tg-width=\"877\" tg-height=\"617\" width=\"100%\" height=\"auto\"/></p><p>&#34;We couldn&#39;t be more confident in the path that lies head,&#34; Chief Executive RJ Scaringe told investors on a call after the first-quarter results.</p><p>Rivian has $17 billion in cash, the capacity to build 150,000 vehicle units, and sees &#34;incredible demand&#34; for its EVs, including a cheaper vehicle in the future, &#34;ensuring we are positioning ourselves for significant growth in the coming years,&#34; Scaringe said.</p><p>Rivian made 2,553 vehicles in the quarter and delivered 1,227, generating $95 million in revenue, the company said.</p><p>Analysts polled by FactSet expected the EV maker to report an adjusted loss of $1.49 a share on sales of $133 million.</p><p>The gap between produced and delivered vehicles in the quarter was strictly on timing, not quality issues, Scaringe said.</p><p>Rivian has taken a page from Tesla Inc. and also sells its vehicles directly to consumers, bypassing dealerships.</p><p>The company has worked with suppliers so they can ramp their production and Rivian can meet its demand, Scaringe said. Suppliers have &#34;leaned in,&#34; and that was in part what gave the company the confidence to keep its production goals, the CEO said.</p><p>&#34;We remain focused on ramping production throughout 2022,&#34; the company said in its letter to shareholders.</p><p>Rivian went on to describe production problems that included ongoing shortages of semiconductor chips as well as other parts, stoppages and bottlenecks.</p><p>Supply-chain &#34;constraints&#34; will continue to limit production, but based on the &#34;latest understanding of the supply-chain environment,&#34; Rivian reaffirmed its guidance to make about 25,000 vehicles this year.</p><p>The EV maker said it had more than 90,000 preorders for its electric vehicles from consumers in the U.S. and Canada, including 10,000 orders after it increased model prices in March that averaged more than $93,000 apiece.</p><p>Rivian said it ended the quarter with about $17 billion in cash and equivalents.</p><p>The stock ended the regular trading day down 9.6% to a record-low close of $20.60, after news that Ford Motor Co. and other major backers had sold shares as soon as the post-IPO lockup period ended.</p><p>The stock is down 80% so far this year, compared with losses of around 17% for the S&amp;P 500 index .</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2234629939","content_text":"Rivian Automotive Inc. stock rose nearly 6% in after-hours trading Wednesday after the electric-vehicle maker kept its 2022 production outlook intact and tried to assure investors about it was on the right track amid a recent selloff of its shares.\"We couldn't be more confident in the path that lies head,\" Chief Executive RJ Scaringe told investors on a call after the first-quarter results.Rivian has $17 billion in cash, the capacity to build 150,000 vehicle units, and sees \"incredible demand\" for its EVs, including a cheaper vehicle in the future, \"ensuring we are positioning ourselves for significant growth in the coming years,\" Scaringe said.Rivian made 2,553 vehicles in the quarter and delivered 1,227, generating $95 million in revenue, the company said.Analysts polled by FactSet expected the EV maker to report an adjusted loss of $1.49 a share on sales of $133 million.The gap between produced and delivered vehicles in the quarter was strictly on timing, not quality issues, Scaringe said.Rivian has taken a page from Tesla Inc. and also sells its vehicles directly to consumers, bypassing dealerships.The company has worked with suppliers so they can ramp their production and Rivian can meet its demand, Scaringe said. Suppliers have \"leaned in,\" and that was in part what gave the company the confidence to keep its production goals, the CEO said.\"We remain focused on ramping production throughout 2022,\" the company said in its letter to shareholders.Rivian went on to describe production problems that included ongoing shortages of semiconductor chips as well as other parts, stoppages and bottlenecks.Supply-chain \"constraints\" will continue to limit production, but based on the \"latest understanding of the supply-chain environment,\" Rivian reaffirmed its guidance to make about 25,000 vehicles this year.The EV maker said it had more than 90,000 preorders for its electric vehicles from consumers in the U.S. and Canada, including 10,000 orders after it increased model prices in March that averaged more than $93,000 apiece.Rivian said it ended the quarter with about $17 billion in cash and equivalents.The stock ended the regular trading day down 9.6% to a record-low close of $20.60, after news that Ford Motor Co. and other major backers had sold shares as soon as the post-IPO lockup period ended.The stock is down 80% so far this year, compared with losses of around 17% for the S&P 500 index .","news_type":1,"symbols_score_info":{}},"isVote":1,"tweetType":1,"viewCount":1844,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":9997828762,"gmtCreate":1661782110058,"gmtModify":1676536577749,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4100170149003520","idStr":"4100170149003520"},"themes":[],"htmlText":"Like","listText":"Like","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9997828762","repostId":"2262162956","repostType":2,"isVote":1,"tweetType":1,"viewCount":1595,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9906037990,"gmtCreate":1659452254212,"gmtModify":1705980500393,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4100170149003520","idStr":"4100170149003520"},"themes":[],"htmlText":"Oh","listText":"Oh","text":"Oh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9906037990","repostId":"1188690484","repostType":4,"repost":{"id":"1188690484","kind":"news","pubTimestamp":1659454673,"share":"https://ttm.financial/m/news/1188690484?lang=en_US&edition=fundamental","pubTime":"2022-08-02 23:37","market":"us","language":"en","title":"Alibaba: Be Greedy When Others Are Fearful","url":"https://stock-news.laohu8.com/highlight/detail?id=1188690484","media":"Seeking Alpha","summary":"SummaryAlibaba has grown at a 5-year CAGR of more than 42%, but the company's stock is trading at a ","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Alibaba has grown at a 5-year CAGR of more than 42%, but the company&#39;s stock is trading at a PE of about x17.</li><li>The stock is down about 70% from ATH and now trades at very attractive risk/reward levels.</li><li>Personally, I see more than 50% upside for BABA stock, as I calculate the company&#39;s fair value with a residual earnings model.</li></ul><p><b>Thesis</b></p><p>I am very bullish on Alibaba (NYSE:BABA) stock. I strongly believe that the market has priced in too much negativity and pessimism as compared to reality and investors are well advised to follow one of Buffett&#39;s key maxims:</p><blockquote>Be greedy when others are fearful.</blockquote><p>Alibaba has grown at a 5-year CAGR of more than 42%, but the company&#39;s stock is trading at a PE of about x17. This indicates a clear undervaluation.</p><p>Of course, I understand that investors are worried about a potential ADR delisting, slowing economy and crackdown on internet/tech companies. However, just like a bull market tops on the most bullish conditions, a bear market bottoms on the most bearish conditions. While investors should study and understand the risks, I personally believe that Alibaba stock will rebound strongly from current price levels of below $100/share.</p><p>Personally, I see more than 50% upside for BABA stock, as I calculate the company&#39;s fair value with a residual earnings model anchored on fundamentals and analyst consensus estimates. My target price is $133.92.</p><p><b>A Best-In-Class Company</b></p><p>Alibaba is one of the biggest e-commerce companies in the world. The company operates three main shopping sites Taobao, Tmall and Alibaba.com, which cumulatively serve some 828 million monthly active buyers (fiscal year ending March 31, 2021).</p><p>Alibaba also has stakes in multiple innovative internet/technology businesses such as Youku (video entertainment), Pony.Ai (Autonomous Driving) and most notably Ant Group (The world&#39;s biggest financial service company). Alipay serves almost the entire population in China. The platform has 1.3 billion users and 80 million merchants. Notably, the total payment volume of Alipay was more than $19 trillion in 2021.</p><p>Moreover, Alibaba is a dominant force in China&#39;s cloud market with about37% market share. China&#39;s cloud market is expected to grow at a 4-year CAGR of more than 25%, reaching $85 billion in 2026. As the market leader in China, Alibaba is poised to benefit from this super-charged cloud-growth. Cloud is also a business vertical where the company should enjoy government tailwind, as the Chinese Communist Party is actively supporting digitalization efforts of the economy and has made cloud development a key-priority in the party&#39;s5-year development plan.</p><p><b>Bullish Financials</b></p><p>In the past financial year, the Alibaba Group generated total revenues of about $134.5 billion and recorded an operating income of about $15 billion. Most notably in the past five years, from March 2017 to March 2022, Alibaba has grown at an unbelievable 5-year CAGR of 42%. For reference, this is almost double the growth rate of Amazon, which grew at a 5-year CAGR of 22% CAGR over the same period. Alibaba closed the fiscal year 2021 with 9.8 billion of net-income available to common shareholders.</p><p>Alibaba&#39;sbalance sheet is very strong: As of March 2022, the company recorded $71.7 billion of cash and cash equivalents and only $27.85 of total financial debt. This makes Alibaba a net-creditor of about $43 billion -- which is 17% of the company&#39;s market capitalization. Moreover, Alibaba&#39;s business operations, despite the strong growth, are cash-accretive. In fiscal 2021, the company generated cash from operations of $22.5 billion. Under these circumstances it should come to no surprise that the company announced a $25 billion share-buyback program, more than 10% of the outstanding shares) in March 2022.</p><p>Alibaba will announce earnings for the quarter from April to end of June on August 4th before the market open. Analyst consensus expects total revenues of $30.21 billion and EPS of $1.56.</p><p><b>The Buying Opportunity</b></p><p>Despite the strong business fundamentals, Alibaba stock suffered a spectacular sell-off. BABA shares are down about 70% from ATH as the company was pressured by multiple headwinds: ADR delisting fears, as slowing economy , Covid-19 lockdowns and an aggressive regulatory crackdown that started with the cancellation of the Ant Group IPO in November 2020.</p><p><img src=\"https://static.tigerbbs.com/c01e6eab7204bcc90b5af9aa0d87ac85\" tg-width=\"640\" tg-height=\"232\" referrerpolicy=\"no-referrer\"/></p><p>Seeking Alpha</p><p>Alibaba is a quality company, and the stock&#39;s undervaluation is no secret to investors. The key-question is: is the worst behind, and can investors safely invest in Alibaba stock?</p><p>I strongly believe that a safe investment does not exist. In my opinion, every investment opportunity must be judged as a function of its price. And the lower the price, the less risky an investment becomes. Thus, investing is a question of risk/reward. Given Alibaba&#39;s extremely depressed valuation - now the company&#39;s stock is trading at a PE of about x17- I argue an investment is justified.</p><p>Moreover, there are signs that all of Alibaba&#39;s headwinds are easing and the negativity surrounding the stock has peaked. China has on multiple occasions tried to communicate to investors that the internet/technology crackdown is coming to an end and is actively supporting the healthy expansion of digital platform economies.</p><p>In addition, China has vowed to push more fiscal economic support- with a special focus on digitalization. While western economies are hawkish on fiscal and monetary stimulus - ending a decade long easing cycle, China is one of the few economies that appears to start a new stimulus cycle.</p><p>Analysts agree with the bullish thesis. In general, analysts are very bullish on Alibaba stock. Based on ratings of 44 analysts, 33 analysts give a Strong Buy rating, 8 are Buy rated and 3 assign a Hold recommendation. There is no Sell or Strong Sell rating. The average price target is $155.47/share, indicating more than 70% upside.</p><p><img src=\"https://static.tigerbbs.com/8fa3c940aeeed4780c87b1ca71bdb180\" tg-width=\"640\" tg-height=\"228\" referrerpolicy=\"no-referrer\"/></p><p>Seeking Alpha</p><p><b>Residual Earnings Valuation</b></p><p>Let us now look at the valuation. What could be a fair per-share value for Alibaba stock? To answer the question, I have constructed a Residual Earnings framework and anchor on the following assumptions:</p><ul><li>To forecast EPS, I anchor on consensus analyst forecast as available on the Bloomberg Terminal &#39;till 2025. In my opinion, any estimate beyond 2025 is too speculative to include in a valuation framework. But for 2-3 years, analyst consensus is usually quite precise.</li><li>To estimate the cost of capital, I use the WACC framework. I model a three-year regression against the Hang Seng to find the stock&#39;s beta. For the risk-free rate, I used the U.S. 10-year treasury yield as of July 22nd, 2022. My calculation indicates a fair WACC of about 9.8%. I adjust upward to 12% in order to reflect the company&#39;s idiosyncratic market risk.</li><li>To derive Baidu&#39;s tax rate, I extrapolate the 3-year average effective tax-rate from 2019, 2020 and 2021.</li><li>For the terminal growth rate, I apply expected nominal GDP growth plus one percentage point to reflect a favorable growth outlook for Alibaba&#39;s high-potential initiatives</li><li>I do not model any share buyback further supporting a conservative valuation.</li></ul><p>Based on the above assumptions, my calculation returns a base-case target price for Alibaba of $133.92/share, implying material upside of more than 50%.</p><p><img src=\"https://static.tigerbbs.com/b7cb860aca7fa48ef2afe7e265d3effa\" tg-width=\"640\" tg-height=\"229\" referrerpolicy=\"no-referrer\"/></p><p>Analyst Consensus EPS; Author&#39;s Calculation</p><p>I understand that investors might have different assumptions with regards to Alibaba&#39;s required return and terminal business growth. Thus, I also enclose a sensitivity table to test varying assumptions. For reference, red-cells imply an overvaluation as compared to the current market price, and green-cells imply an undervaluation. Notably, all tested combinations imply an undervaluation!</p><p><img src=\"https://static.tigerbbs.com/62ba3323a1f09e75477921298d84cbf8\" tg-width=\"640\" tg-height=\"154\" referrerpolicy=\"no-referrer\"/></p><p>Analyst Consensus EPS; Author&#39;s Calculation</p><p><b>Investment Risks</b></p><p>Investors should be aware of the following downside risks that might cause Alibaba stock to materially deviate from my base-case target price of $133.92/share:</p><p>First, the economy is currently pressured by multiple headwinds including inflation, real-estate crisis and COVID-19 lockdowns. If the economy would slow more than what is expected and priced in, investors should adjust expectations for Alibaba&#39;s short/mid-term business monetization accordingly.</p><p>Secondly, China&#39;s internet/tech companies are strongly exposed to regulatory risk. While the worst seems to be behind us, the elevated risk exposure persists -- and will arguably never completely fade.</p><p>Third, much of BABA&#39;s share price volatility is currently driven by investor sentiment towards Chinese ADRs and risk assets. Thus, BABA stock price might show strong price volatility even though the company&#39;s business fundamentals remain unchanged.</p><p><b>Conclusion</b></p><p>Alibaba stock is down 70% from ATH, but the company remains a global powerhouse with enormous long-term potential. Trading at a PE of below x17, despite growing like a start-up, I argue Alibaba&#39;s sell-off could offer long-term focused investors, that can stomach short term share-price volatility, a generational buying opportunity.</p><p>Personally, I see more than 50% upside for BABA stock, despite cautious and conservative valuation assumptions. Strong Buy.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba: Be Greedy When Others Are Fearful</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba: Be Greedy When Others Are Fearful\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-08-02 23:37 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4528176-alibaba-be-greedy-when-others-fearful><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAlibaba has grown at a 5-year CAGR of more than 42%, but the company's stock is trading at a PE of about x17.The stock is down about 70% from ATH and now trades at very attractive risk/reward ...</p>\n\n<a href=\"https://seekingalpha.com/article/4528176-alibaba-be-greedy-when-others-fearful\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W"},"source_url":"https://seekingalpha.com/article/4528176-alibaba-be-greedy-when-others-fearful","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1188690484","content_text":"SummaryAlibaba has grown at a 5-year CAGR of more than 42%, but the company's stock is trading at a PE of about x17.The stock is down about 70% from ATH and now trades at very attractive risk/reward levels.Personally, I see more than 50% upside for BABA stock, as I calculate the company's fair value with a residual earnings model.ThesisI am very bullish on Alibaba (NYSE:BABA) stock. I strongly believe that the market has priced in too much negativity and pessimism as compared to reality and investors are well advised to follow one of Buffett's key maxims:Be greedy when others are fearful.Alibaba has grown at a 5-year CAGR of more than 42%, but the company's stock is trading at a PE of about x17. This indicates a clear undervaluation.Of course, I understand that investors are worried about a potential ADR delisting, slowing economy and crackdown on internet/tech companies. However, just like a bull market tops on the most bullish conditions, a bear market bottoms on the most bearish conditions. While investors should study and understand the risks, I personally believe that Alibaba stock will rebound strongly from current price levels of below $100/share.Personally, I see more than 50% upside for BABA stock, as I calculate the company's fair value with a residual earnings model anchored on fundamentals and analyst consensus estimates. My target price is $133.92.A Best-In-Class CompanyAlibaba is one of the biggest e-commerce companies in the world. The company operates three main shopping sites Taobao, Tmall and Alibaba.com, which cumulatively serve some 828 million monthly active buyers (fiscal year ending March 31, 2021).Alibaba also has stakes in multiple innovative internet/technology businesses such as Youku (video entertainment), Pony.Ai (Autonomous Driving) and most notably Ant Group (The world's biggest financial service company). Alipay serves almost the entire population in China. The platform has 1.3 billion users and 80 million merchants. Notably, the total payment volume of Alipay was more than $19 trillion in 2021.Moreover, Alibaba is a dominant force in China's cloud market with about37% market share. China's cloud market is expected to grow at a 4-year CAGR of more than 25%, reaching $85 billion in 2026. As the market leader in China, Alibaba is poised to benefit from this super-charged cloud-growth. Cloud is also a business vertical where the company should enjoy government tailwind, as the Chinese Communist Party is actively supporting digitalization efforts of the economy and has made cloud development a key-priority in the party's5-year development plan.Bullish FinancialsIn the past financial year, the Alibaba Group generated total revenues of about $134.5 billion and recorded an operating income of about $15 billion. Most notably in the past five years, from March 2017 to March 2022, Alibaba has grown at an unbelievable 5-year CAGR of 42%. For reference, this is almost double the growth rate of Amazon, which grew at a 5-year CAGR of 22% CAGR over the same period. Alibaba closed the fiscal year 2021 with 9.8 billion of net-income available to common shareholders.Alibaba'sbalance sheet is very strong: As of March 2022, the company recorded $71.7 billion of cash and cash equivalents and only $27.85 of total financial debt. This makes Alibaba a net-creditor of about $43 billion -- which is 17% of the company's market capitalization. Moreover, Alibaba's business operations, despite the strong growth, are cash-accretive. In fiscal 2021, the company generated cash from operations of $22.5 billion. Under these circumstances it should come to no surprise that the company announced a $25 billion share-buyback program, more than 10% of the outstanding shares) in March 2022.Alibaba will announce earnings for the quarter from April to end of June on August 4th before the market open. Analyst consensus expects total revenues of $30.21 billion and EPS of $1.56.The Buying OpportunityDespite the strong business fundamentals, Alibaba stock suffered a spectacular sell-off. BABA shares are down about 70% from ATH as the company was pressured by multiple headwinds: ADR delisting fears, as slowing economy , Covid-19 lockdowns and an aggressive regulatory crackdown that started with the cancellation of the Ant Group IPO in November 2020.Seeking AlphaAlibaba is a quality company, and the stock's undervaluation is no secret to investors. The key-question is: is the worst behind, and can investors safely invest in Alibaba stock?I strongly believe that a safe investment does not exist. In my opinion, every investment opportunity must be judged as a function of its price. And the lower the price, the less risky an investment becomes. Thus, investing is a question of risk/reward. Given Alibaba's extremely depressed valuation - now the company's stock is trading at a PE of about x17- I argue an investment is justified.Moreover, there are signs that all of Alibaba's headwinds are easing and the negativity surrounding the stock has peaked. China has on multiple occasions tried to communicate to investors that the internet/technology crackdown is coming to an end and is actively supporting the healthy expansion of digital platform economies.In addition, China has vowed to push more fiscal economic support- with a special focus on digitalization. While western economies are hawkish on fiscal and monetary stimulus - ending a decade long easing cycle, China is one of the few economies that appears to start a new stimulus cycle.Analysts agree with the bullish thesis. In general, analysts are very bullish on Alibaba stock. Based on ratings of 44 analysts, 33 analysts give a Strong Buy rating, 8 are Buy rated and 3 assign a Hold recommendation. There is no Sell or Strong Sell rating. The average price target is $155.47/share, indicating more than 70% upside.Seeking AlphaResidual Earnings ValuationLet us now look at the valuation. What could be a fair per-share value for Alibaba stock? To answer the question, I have constructed a Residual Earnings framework and anchor on the following assumptions:To forecast EPS, I anchor on consensus analyst forecast as available on the Bloomberg Terminal 'till 2025. In my opinion, any estimate beyond 2025 is too speculative to include in a valuation framework. But for 2-3 years, analyst consensus is usually quite precise.To estimate the cost of capital, I use the WACC framework. I model a three-year regression against the Hang Seng to find the stock's beta. For the risk-free rate, I used the U.S. 10-year treasury yield as of July 22nd, 2022. My calculation indicates a fair WACC of about 9.8%. I adjust upward to 12% in order to reflect the company's idiosyncratic market risk.To derive Baidu's tax rate, I extrapolate the 3-year average effective tax-rate from 2019, 2020 and 2021.For the terminal growth rate, I apply expected nominal GDP growth plus one percentage point to reflect a favorable growth outlook for Alibaba's high-potential initiativesI do not model any share buyback further supporting a conservative valuation.Based on the above assumptions, my calculation returns a base-case target price for Alibaba of $133.92/share, implying material upside of more than 50%.Analyst Consensus EPS; Author's CalculationI understand that investors might have different assumptions with regards to Alibaba's required return and terminal business growth. Thus, I also enclose a sensitivity table to test varying assumptions. For reference, red-cells imply an overvaluation as compared to the current market price, and green-cells imply an undervaluation. Notably, all tested combinations imply an undervaluation!Analyst Consensus EPS; Author's CalculationInvestment RisksInvestors should be aware of the following downside risks that might cause Alibaba stock to materially deviate from my base-case target price of $133.92/share:First, the economy is currently pressured by multiple headwinds including inflation, real-estate crisis and COVID-19 lockdowns. If the economy would slow more than what is expected and priced in, investors should adjust expectations for Alibaba's short/mid-term business monetization accordingly.Secondly, China's internet/tech companies are strongly exposed to regulatory risk. While the worst seems to be behind us, the elevated risk exposure persists -- and will arguably never completely fade.Third, much of BABA's share price volatility is currently driven by investor sentiment towards Chinese ADRs and risk assets. Thus, BABA stock price might show strong price volatility even though the company's business fundamentals remain unchanged.ConclusionAlibaba stock is down 70% from ATH, but the company remains a global powerhouse with enormous long-term potential. Trading at a PE of below x17, despite growing like a start-up, I argue Alibaba's sell-off could offer long-term focused investors, that can stomach short term share-price volatility, a generational buying opportunity.Personally, I see more than 50% upside for BABA stock, despite cautious and conservative valuation assumptions. Strong Buy.","news_type":1,"symbols_score_info":{"BABA":0.9,"09988":0.9}},"isVote":1,"tweetType":1,"viewCount":1612,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333531192770800,"gmtCreate":1722473517651,"gmtModify":1722473522502,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4100170149003520","idStr":"4100170149003520"},"themes":[],"htmlText":"Serv will be up another 18%","listText":"Serv will be up another 18%","text":"Serv will be up another 18%","images":[{"img":"https://community-static.tradeup.com/news/64f18606d393f82a833138fb4c4658c5","width":"825","height":"1290"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333531192770800","isVote":1,"tweetType":1,"viewCount":1667,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":9995828906,"gmtCreate":1661444814208,"gmtModify":1676536520057,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4100170149003520","idStr":"4100170149003520"},"themes":[],"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9995828906","repostId":"2262958683","repostType":2,"isVote":1,"tweetType":1,"viewCount":1722,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9906018761,"gmtCreate":1659452893956,"gmtModify":1705980509762,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4100170149003520","idStr":"4100170149003520"},"themes":[],"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9906018761","repostId":"2256664675","repostType":2,"isVote":1,"tweetType":1,"viewCount":1629,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9064774995,"gmtCreate":1652391957017,"gmtModify":1676535088678,"author":{"id":"4100170149003520","authorId":"4100170149003520","name":"Indu","avatar":"https://community-static.tradeup.com/news/5bd87982401e99c08c4b24be6db75ca6","crmLevel":11,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4100170149003520","idStr":"4100170149003520"},"themes":[],"htmlText":"Super","listText":"Super","text":"Super","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9064774995","repostId":"2234629939","repostType":2,"repost":{"id":"2234629939","kind":"highlight","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1652310016,"share":"https://ttm.financial/m/news/2234629939?lang=en_US&edition=fundamental","pubTime":"2022-05-12 07:00","market":"us","language":"en","title":"Rivian Reaffirms Production Outlook despite Supply-Chain Snags, Boosting Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2234629939","media":"Dow Jones","summary":"Rivian Automotive Inc. stock rose nearly 6% in after-hours trading Wednesday after the electric-vehi","content":"<html><head></head><body><p>Rivian Automotive Inc. stock rose nearly 6% in after-hours trading Wednesday after the electric-vehicle maker kept its 2022 production outlook intact and tried to assure investors about it was on the right track amid a recent selloff of its shares.</p><p><img src=\"https://static.tigerbbs.com/1d0d25609d3c6a81a4f790f13b923483\" tg-width=\"877\" tg-height=\"617\" width=\"100%\" height=\"auto\"/></p><p>&#34;We couldn&#39;t be more confident in the path that lies head,&#34; Chief Executive RJ Scaringe told investors on a call after the first-quarter results.</p><p>Rivian has $17 billion in cash, the capacity to build 150,000 vehicle units, and sees &#34;incredible demand&#34; for its EVs, including a cheaper vehicle in the future, &#34;ensuring we are positioning ourselves for significant growth in the coming years,&#34; Scaringe said.</p><p>Rivian made 2,553 vehicles in the quarter and delivered 1,227, generating $95 million in revenue, the company said.</p><p>Analysts polled by FactSet expected the EV maker to report an adjusted loss of $1.49 a share on sales of $133 million.</p><p>The gap between produced and delivered vehicles in the quarter was strictly on timing, not quality issues, Scaringe said.</p><p>Rivian has taken a page from Tesla Inc. and also sells its vehicles directly to consumers, bypassing dealerships.</p><p>The company has worked with suppliers so they can ramp their production and Rivian can meet its demand, Scaringe said. Suppliers have &#34;leaned in,&#34; and that was in part what gave the company the confidence to keep its production goals, the CEO said.</p><p>&#34;We remain focused on ramping production throughout 2022,&#34; the company said in its letter to shareholders.</p><p>Rivian went on to describe production problems that included ongoing shortages of semiconductor chips as well as other parts, stoppages and bottlenecks.</p><p>Supply-chain &#34;constraints&#34; will continue to limit production, but based on the &#34;latest understanding of the supply-chain environment,&#34; Rivian reaffirmed its guidance to make about 25,000 vehicles this year.</p><p>The EV maker said it had more than 90,000 preorders for its electric vehicles from consumers in the U.S. and Canada, including 10,000 orders after it increased model prices in March that averaged more than $93,000 apiece.</p><p>Rivian said it ended the quarter with about $17 billion in cash and equivalents.</p><p>The stock ended the regular trading day down 9.6% to a record-low close of $20.60, after news that Ford Motor Co. and other major backers had sold shares as soon as the post-IPO lockup period ended.</p><p>The stock is down 80% so far this year, compared with losses of around 17% for the S&amp;P 500 index .</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Rivian Reaffirms Production Outlook despite Supply-Chain Snags, Boosting Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRivian Reaffirms Production Outlook despite Supply-Chain Snags, Boosting Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2022-05-12 07:00</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Rivian Automotive Inc. stock rose nearly 6% in after-hours trading Wednesday after the electric-vehicle maker kept its 2022 production outlook intact and tried to assure investors about it was on the right track amid a recent selloff of its shares.</p><p><img src=\"https://static.tigerbbs.com/1d0d25609d3c6a81a4f790f13b923483\" tg-width=\"877\" tg-height=\"617\" width=\"100%\" height=\"auto\"/></p><p>&#34;We couldn&#39;t be more confident in the path that lies head,&#34; Chief Executive RJ Scaringe told investors on a call after the first-quarter results.</p><p>Rivian has $17 billion in cash, the capacity to build 150,000 vehicle units, and sees &#34;incredible demand&#34; for its EVs, including a cheaper vehicle in the future, &#34;ensuring we are positioning ourselves for significant growth in the coming years,&#34; Scaringe said.</p><p>Rivian made 2,553 vehicles in the quarter and delivered 1,227, generating $95 million in revenue, the company said.</p><p>Analysts polled by FactSet expected the EV maker to report an adjusted loss of $1.49 a share on sales of $133 million.</p><p>The gap between produced and delivered vehicles in the quarter was strictly on timing, not quality issues, Scaringe said.</p><p>Rivian has taken a page from Tesla Inc. and also sells its vehicles directly to consumers, bypassing dealerships.</p><p>The company has worked with suppliers so they can ramp their production and Rivian can meet its demand, Scaringe said. Suppliers have &#34;leaned in,&#34; and that was in part what gave the company the confidence to keep its production goals, the CEO said.</p><p>&#34;We remain focused on ramping production throughout 2022,&#34; the company said in its letter to shareholders.</p><p>Rivian went on to describe production problems that included ongoing shortages of semiconductor chips as well as other parts, stoppages and bottlenecks.</p><p>Supply-chain &#34;constraints&#34; will continue to limit production, but based on the &#34;latest understanding of the supply-chain environment,&#34; Rivian reaffirmed its guidance to make about 25,000 vehicles this year.</p><p>The EV maker said it had more than 90,000 preorders for its electric vehicles from consumers in the U.S. and Canada, including 10,000 orders after it increased model prices in March that averaged more than $93,000 apiece.</p><p>Rivian said it ended the quarter with about $17 billion in cash and equivalents.</p><p>The stock ended the regular trading day down 9.6% to a record-low close of $20.60, after news that Ford Motor Co. and other major backers had sold shares as soon as the post-IPO lockup period ended.</p><p>The stock is down 80% so far this year, compared with losses of around 17% for the S&amp;P 500 index .</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2234629939","content_text":"Rivian Automotive Inc. stock rose nearly 6% in after-hours trading Wednesday after the electric-vehicle maker kept its 2022 production outlook intact and tried to assure investors about it was on the right track amid a recent selloff of its shares.\"We couldn't be more confident in the path that lies head,\" Chief Executive RJ Scaringe told investors on a call after the first-quarter results.Rivian has $17 billion in cash, the capacity to build 150,000 vehicle units, and sees \"incredible demand\" for its EVs, including a cheaper vehicle in the future, \"ensuring we are positioning ourselves for significant growth in the coming years,\" Scaringe said.Rivian made 2,553 vehicles in the quarter and delivered 1,227, generating $95 million in revenue, the company said.Analysts polled by FactSet expected the EV maker to report an adjusted loss of $1.49 a share on sales of $133 million.The gap between produced and delivered vehicles in the quarter was strictly on timing, not quality issues, Scaringe said.Rivian has taken a page from Tesla Inc. and also sells its vehicles directly to consumers, bypassing dealerships.The company has worked with suppliers so they can ramp their production and Rivian can meet its demand, Scaringe said. Suppliers have \"leaned in,\" and that was in part what gave the company the confidence to keep its production goals, the CEO said.\"We remain focused on ramping production throughout 2022,\" the company said in its letter to shareholders.Rivian went on to describe production problems that included ongoing shortages of semiconductor chips as well as other parts, stoppages and bottlenecks.Supply-chain \"constraints\" will continue to limit production, but based on the \"latest understanding of the supply-chain environment,\" Rivian reaffirmed its guidance to make about 25,000 vehicles this year.The EV maker said it had more than 90,000 preorders for its electric vehicles from consumers in the U.S. and Canada, including 10,000 orders after it increased model prices in March that averaged more than $93,000 apiece.Rivian said it ended the quarter with about $17 billion in cash and equivalents.The stock ended the regular trading day down 9.6% to a record-low close of $20.60, after news that Ford Motor Co. and other major backers had sold shares as soon as the post-IPO lockup period ended.The stock is down 80% so far this year, compared with losses of around 17% for the S&P 500 index .","news_type":1,"symbols_score_info":{}},"isVote":1,"tweetType":1,"viewCount":1844,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}