SA: Alibaba stock – best to stay on the sidelines until Beijing is done

ID 116498071 © Alexey Novikov | Dreamstime.com

SEEKING ALPHA’s JR Research writes:

Investment Thesis

We last covered Alibaba (BABA) in November, as we encouraged readers to consider staying out until we have clarity over its regulatory stance. Two months on, the stock is still about where it was (+/- 3%), and there is still no clarity over Beijing’s guidance.

Nevertheless, Alibaba held an investor’s day in December, as they sought to assuage investors to focus on its long-term growth story as management discussed new growth areas.

BABA stock is undoubtedly cheap given ...