Is Alibaba Stock a Buy Now?
Alibaba's (NYSE: BABA) stock price rallied 15% on May 26 after the Chinese e-commerce and cloud giant posted its fourth-quarter earnings report. Its revenue rose 9% year over year to 204.05 billion yuan ($32.19 billion), which marked its slowest growth as a public company but still beat analysts' estimates by 4.62 billion yuan. Its adjusted net income fell 24% to 19.8 billion yuan ($3.12 billion), or 7.95 yuan ($1.25) per share, but still cleared analysts' expectations by 0.78 yuan.
Alibaba's growth rates were tepid, but investors had set a low bar for the tech giant following four straight quarters of disappointing growth. Its stock price had also declined more than 55% over the past 12 months, and it was only trading at about 13 times forward earnings.
So is it finally the right time to buy Alibaba? Let's review its previous challenges, its current growth rates, and its valuations to decide.
Source Fool.com
