Alibaba | BABA | Long at $108.84

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Like Amazon, I suspect AI and robotics will enhance Alibaba's BABA e-commerce, logistics, and cloud computing operations. There is some risk here, like other Chinese stocks, that they could be delisted from the US market if trade/war tensions rise. But I just don't think that is likely (no matter the threats) due to the importance of worldwide trade and investment. I could be way wrong, though...

BABA has a current P/E of 14.2x and a forward P/E of 2x, which indicates strong earnings growth ahead. The company is very healthy, with a debt-to-equity of 0.2x, Altmans Z Score of 3.3, and a Quick Ratio of 1.5. If this were a US stock, investors would have piled in long ago at the current price.

From a technical analysis perspective, the historical simple moving average (SMA) band has started to reverse trend (now upward), indicating a high potential for continued (overall) price movement up. It is possible, however, that the price may reenter the SMA band in the near-term - the $80s aren't out of the question - as tariff threats arise. But that area is another personal entry zone if fundamentals hold.

Thus, while it could be a bumpy ride and the risk is there for delisting, BABA is in a personal buy zone at $108.84 (with known risk of drop to the $80s in the near-term).

Targets into 2028:
  1. $125.00 (+14.8%)
  2. $160.00 (+47.0%)

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