The 3 Biggest Risks Facing Alibaba's Stock
Alibaba (NYSE: BABA) is the largest e-commerce, digital advertising, and cloud platform company in China. Its sprawling ecosystem also includes streaming media platforms, a film studio, a mobile browser, smart speakers, and various other businesses.
Alibaba's stock has more than tripled since its IPO in 2014, and it's considered by many to be one of the most stable tech plays in China. It also remains cheap relative to its growth: Analysts expect its revenue and earnings to rise 34% and 29%, respectively, this year, but its stock trades at just 25 times forward earnings.
Alibaba will likely weather the near-term headwinds like the U.S.-China trade war and the coronavirus outbreak, but investors should note that it still faces three major challenges that could curb its long-term growth. These challenges are:
Source Fool.com
