Alibaba Cuts 10,000 Jobs Amid Economic Headwinds
August 8, 2022
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Alibaba Stock Intrinsic Value – It is unclear how this downsizing will affect Alibaba’s ($NYSE:BABA) market and earnings in the long term.
However, given the current economic conditions in China, it is possible that this move will help the company save costs and weather the storm in the short term.
Market Reaction
Over the past few months, Alibaba has been facing increasing economic headwinds. This news has largely been met with negative reactions, and on Friday, Alibaba’s stock opened at $93.1 and closed at $92.6.
VI Analysis – Alibaba Stock Intrinsic Value
Companies’ fundamentals reflect their long term potential. Below, we analyze Alibaba’s fundamentals using the VI app. Alibaba Stock Intrinsic Value is around $278.1, calculated by VI Line. Alibaba stock is currently traded at $92.6, meaning it is undervalued by 67%.
Summary
Alibaba is one of the most popular stocks among foreign investors, and the recent sell-off has been driven by concerns about the health of the Chinese economy.
