Alibaba provides a great opportunity to buy its stock, analyst say
Alibaba’s stock has lost almost 20% of its value. Nevertheless, the company is still performing better than many others. Analysts from Investorpalace believe, that this is a good time to invest in the Chinese behemoth.
In the past three quarters, Alibaba’s net income from sales has amounted to US$70.6 billion. Each share brings the company the profit of US9.48, which brings it to 19.6 times earnings. It also has various projects in the promising fintech and AI development sectors.
However, according to the analysts, this is not the only reason to buy Alibaba stock. The company serves primarily the middle class, which is still surging in China. In 18 years, the demographic has went up from 80 million to over 700 million. The company is also expanding worldwide - only 66% of its revenue is coming from China.
Alibaba also seems to be handling the pandemic well enough and might recover fast. Analysts believe, that it makes the company’s stock a safe option to buy.