Where Will Alibaba Be in 5 Years?
Alibaba (NYSE: BABA), the top e-commerce and cloud player in China, went public at $68 per share in September 2014. The stock nearly tripled over the following five years, fueled by the growth of the company's core marketplaces and ongoing expansions into adjacent markets.
But today the ongoing trade war, the Chinese economy's slowdown, and a depreciating yuan are all curbing investor enthusiasm for Alibaba's stock. As a result, the stock trades just over 20 times forward earnings, a low multiple compared to analysts' forecasts for 30% sales growth and 28% earnings growth next year.
Does the tepid near-term interest in Alibaba indicate that it's time for long-term investors to hop on? Let's see how the next five years could unfold for the Chinese tech giant.
Quelle Fool.com
