Upcoming Stock Drivers for Alibaba

Like BABA at this level but I am not married to it

I am Qi Wang, CEO of MegaTrust Investment (HK), a boutique China fund manager based in Shanghai and Hong Kong. Total 25 years of experience in Chinese and global equities. This is my blog for MegaTrust clients and professional investors.

I’ve been invited to share my views on Alibaba (BABA, 9988.HK) on CNBC Asia tomorrow. It’s supposed to be a bull vs. bear panel, but we are still trying to find a strong bear at this price level. There is a chance that the interview may be called off…

In any case, here is my thinking on Alibaba the stock. Incidentally, BABA will report quarterly earnings tonight.

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Bullish or Bearish

It depends on the price and the valuation.

For Chinese Internet companies, there is a paradigm shift whereby valuation does matter, because growth is capped by tightened regulations. The old regime of unlimited expansion and unlimited upside is over. I noted this in as early as 2021 (valuation limits on Big Tech).