Time to Buy Alibaba Right Now?

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In this video I try to answer the question many investors ask today: Is Alibaba (NYSE:BABA) stock worth buying, knowing the China risk? I will also explain what the Alibaba Group actually is, because it’s a company that owns various businesses such as Taobao, Tmall, AliExpress, and many more. You can find the video below. 

Recap

In Q4, Alibaba reported revenue of $28.6 billion, a 64% year-over-year increase. Operating income was negative for the first time in years as a result of the antitrust probe in China. In fiscal 2021, Alibaba generated 87% of its revenue and all of its profits from its core commerce unit, which includes its Taobao and Tmall marketplaces, brick-and-mortar stores, and cross-border and international marketplaces. It had more than 1 billion annual active consumers globally and $1.2 trillion in GMV.

Alibaba Cloud experienced robust revenue growth of 37% year over year during the March quarter. Its market share stands at 6%; for comparison, Amazon’s AWS has 32%.

The Alibaba business

Alibaba Group owns many businesses, so I’ll list some below and discuss them further in the video. 

  • Taobao (which means “searching for treasures” in Chinese): A business-to-consumer (B2C) business. It has over 2 billion listings in products and services.
  • Tmall: A platform for high-end B2Cs such as Piaget, Nike, and Ralph Lauren that want a presence in the Chinese market.
  • Tmall Global: A cross-border business-to-consumer marketplace.
  • AliExpress: An international commerce retail marketplace. 
  • Alibaba.com: A wholesale marketplace. 
  • Alibaba Cloud: A web services business similar to Amazon‘s AWS and Microsoft‘s Azure. 
  • Freshippo: A high-tech grocery chain. 
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*Stock prices used were the closing prices of July 17, 2021. The video was published on July 19, 2021.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.



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