Alibaba Stock DOWN 55% in ONE YEAR!!! BABA Stock Analysis
The Stock Students The Stock Students
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 Published On Feb 28, 2022

Alibaba stock has fallen over 55% in just one year! Should you buy BABA stock now? If you have any comments or questions with my BABA stock analysis and chart analysis, drop me a comment down below!

Key Points:
- BABA stock is likely down due to local government regulation. While some journalists suggest that the worst of the technology regulation may be behind us, that is not the same as saying that no more regulation will come. While one of the largest risks to the stock may be regulation, considerations also need to be made for risks to geopolitical conflict and rising interest rates.

- BABA stock is seeing 10% growth in revenues, however, seeing some headwinds in their most recent earnings report. Costs of revenues appear to be increasing faster than revenue growth which appear to be compressing margins, as well as rising sales and marketing expenses. There also is an impairment to goodwill charge on the earnings report, related to investment activities in their digital content department. This slowdown in the fundamentals are likely due to the increased pressure of regulation.

- Investing in Alibaba stock is risky at the moment. There is a lot of downwards momentum in the company at the moment, and we have incredibly large risk with government regulation, geopolitical, and rising interest rates. However, at the moment, BABA stock does have a foothold in the fastest growing economy in the world, and has different businesses for growth. As always, you have to consider the upside and downside risks before investing in the stock.

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Link (1) BABA stock impacted by Chinese tech regulation (TechMonitor):
https://techmonitor.ai/policy/big-tec...

Link (2) BABA stock may see tailwinds if worst of technology crackdown is over (CNBC):
https://www.cnbc.com/2022/02/11/econo...

Link (3) BABA stock may see headwinds if large regulation is still yet to come (CNBC):
https://www.cnbc.com/2022/02/18/china...

Link (4) BABA stock most recent earnings report:
https://www.alibabagroup.com/en/news/...

Link (5) BABA stock impacted by goodwill impairment (Investopedia):
https://www.investopedia.com/ask/answ...

Link (5) Real time trading chart of BABA stock: https://www.tradingview.com/chart/?sy...

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Disclosure:
I have a position in Alibaba stock at time of recording, less than 2% of my overall portfolio
thestockstudents.com/disclaimer

#Alibaba #BABA #stockmarket

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