From Nasdaq: 2024-05-18 02:40:00

Alibaba Group went public in 2014, raising $25 billion and impressing with rapid growth. Stock hit $312.87 in 2020, but now trades at $81 due to regulatory and macro issues. Growth may rebound, as Alibaba reported accelerated revenue and net income growth in 2024.

Alibaba has faced antitrust fines and restrictions on its e-commerce business. Growth slowed in 2022 and 2023, but rebounded in 2024. Analysts expect revenue to grow by 8% annually and net income by 26% over the next two years, making Alibaba’s stock undervalued compared to its future prospects.

Domestic and overseas market expansions drive Alibaba’s revenue growth. Batting macroeconomic headwinds, the company bought back shares and announced its first cash dividend. Analysts expect its revenue to grow by 10% annually over the next decade, potentially leading to a 10-bagger gain in stock price.

Amidst challenges, Alibaba must widen its moat, leverage its scale, and navigate regulatory hurdles to maintain growth. An optimistic outlook suggests a 10-fold increase in stock price by 2034. Investors considering Alibaba should evaluate long-term growth prospects and risks before making investment decisions.



Read more at Nasdaq: Alibaba Stock Is Beaten Down Now, but It Could 10X