Alibaba Remains an Undervalued Growth Stock
Alibaba (NYSE: BABA), the biggest e-commerce and cloud player in China, late last week reported its second-quarter earnings. Its revenue rose 40% annually to RMB 119.02 billion ($16.65 billion), beating estimates by $180 million.
Its GAAP net income, which included a big one-time gain from its increased stake in the fintech company Ant Financial, surged 288% to RMB 70.75 billion ($9.9 billion), or $3.85 per share. On a non-GAAP basis, which excludes that gain, stock-based compensation, and other one-time charges, its net income rose 40% to RMB 32.75 billion ($4.58 billion), or $1.83 per share, which beat expectations by $0.32.
Alibaba's stock briefly popped after the report, but subsequently gave up most of those gains, presumably due to ongoing concerns about the U.S.-China trade war and the economic slowdown in China. Should long-term investors consider starting a position in this tech titan even as the bulls remain on the sidelines?
Source Fool.com
