Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines, and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.
Alibaba is one of the world’s largest retailers and e-commerce companies. In 2020, it was also rated as the fifth-largest artificial intelligence company. It is also one of the biggest venture capital firms, and one of the biggest investment corporations in the world
Just keep in mind that IF the Evergrande situation gets worse, Alibaba’s stock will likely be falling A LOT harder than amazon stock.
And to top that of, If the Chinese government feels like putting in a few more regulatory crackdowns on a whim It could hurt Alibaba a lot (like it did in the last year).
That being said, Personally I feel like Chinese stocks are always going to more of a risk in comparison, because of the extreme government (And to top it off the evergrande situation now), which is why I stay clear from them (I also dont have amazon atm btw).
But where there is higher risk, there might be higher reward! Just wanted to warn that, in my humble opinion, the risk is definitely higher for Alibaba stock at the moment.
Surely agree with @Mixer that Chinese stocks are high(er) risk. We can even doubt if we can trust the numbers coming from Chinese companies. I do think $BABA is one of the safest choices tho. In my opinion Chinese government does not have a lot to gain by crushing the company.
And I do sort of agree with the above, however, It still is rather strange that the CEO went missing for 4 months just after criticizing the Chinese government (from October 2020-Jan 2021). And whether you believe it was forced by the government or simply Jack Ma trying to lay low, It still is pretty clear, in my opinion, that the Chinese government choses public order OVER economic wealth of companies. which makes it a higher risk for investors.
But hey, like I said before, High risk, high reward! I am fairly sure that the stock will grow IF the Chinese government gives it green light (unlike last year ).
Chinese stocks are ofcourse higher risk but they are also very low because of that. IMO China is a choice not a must. Baba is a safe choice IMO and they are valued way cheaper then Amazon or something like that.
Personally I think that BABA is a waiting game. They are growing annually and have strong fundamentals. I think the downwards trend will hold on for a bit, but on the long term it will bounce up, are my expectations. Can’t really predict anything with the Chinese stocks to be honest . I am just holding right now, waiting and waiting…
It will certainly raise the price again, which is good. AND it’s great that they are buying at these depressed prices. Often companies buy back stock when it’s near it’s top range, which is silly.
At that point it’s better to pay a dividend and save the buybacks for when the stock is depressed.