From NASDAQ:

Shares of Alibaba stock have dropped 68% in the past three years despite hopes of rebounding from the pandemic and recovering from the Beijing crackdown. Although the stock may seem disappointing, it still offers reasons to buy, sell, and hold.

Alibaba has shown improved revenue growth and expanding margins, making it an attractive buy. It’s still generating substantial profits and trading at a low price-to-earnings ratio, leaving room for growth if it can demonstrate consistent growth.

The uncertainty around China’s economy and regulatory environment poses the biggest risk for Alibaba stock. The weak Chinese economy, slow GDP growth, and geopolitical tensions contribute to the fragility of the company’s growth.

The best reason to hold Alibaba is that the business is still in flux. Alibaba’s new CEO aims to focus on artificial intelligence, prioritize user experience, and defend against rising competition. Investors may want to wait for clearer signs of a turnaround before investing.

An analyst team does not recommend investing in Alibaba Group but identifies 10 other stocks that could produce significant returns. The Stock Advisor service has more than tripled the return of S&P 500 since 2002.



Read more: Alibaba Stock: Buy, Sell, or Hold?