3 Reasons to Buy Alibaba Stock, and 3 Reasons to Sell
Alibaba (NYSE: BABA) has taken investors on a wild ride since its IPO in 2014. China's top e-commerce and cloud platform company initially dazzled investors with its robust growth rates, and its stock hit an all-time high of $317.14 in October 2020. But over the following two years, Alibaba's stock was crushed by an antitrust probe and fine, new restrictions on its e-commerce business, COVID-19-related lockdowns, and other macro headwinds in China. It also faced the threat that its stock would be delisted from U.S. exchanges.
Today, Alibaba's stock trades at about $87, which is still above its IPO price of $68 per share but well below the range where it traded in its heyday. It also looks historically cheap at 9 times forward earnings, but investors still seem reluctant to buy the stock.
Image source: Alibaba.
Source Fool.com
