Alibaba Is Still a Great Long-Term Investment, Despite Coronavirus Setback
The expression "May you live in interesting times" may not be of Chinese origin, but "interesting times" certainly describes the current state of Alibaba (NYSE: BABA). The Chinese e-commerce giant beat consensus estimates for both earnings and revenue in its fiscal 2020 third-quarter report released last week. It also pulled off a Nov. 26 initial public offering on the Hong Kong stock exchange (it is already traded publicly in the U.S.) amid heavy political turmoil in that special administrative region of China.
With the coming of the new year, attention has now shifted to a dangerous virus outbreak that has slowed economic activity in China even more than it had already slowed in 2019. The question for investors now is how this will affect Alibaba and other Chinese stocks. Alibaba's share price may not yet reflect the novel coronavirus full adverse effects on its short-term revenue and earnings, but all indications are that the impact will likely not change the long-term trajectory of the company's growth.
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