ALIBABA Hit Hard by New Chinese Lockdowns

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Alibaba Intrinsic Value – The recent resurgence of COVID-19 in China has led to strict lockdown measures being imposed in many cities across the country. This is likely to have a negative impact on large e-Commerce companies like Alibaba($NYSE:BABA), as millions of people are once again limited in their ability to travel freely and to go to work. This will undoubtedly affect Alibaba’s market and earnings in the long term.

Stock Price

On Thursday, shares of Chinese e-commerce giant Alibaba opened at $88.6 and closed at $89.5, down 1.2% from its last closing price of $90.6. The lockdowns are expected to impact Alibaba’s business, as consumers will have less disposable income and may be hesitant to shop online. Alibaba has been working to diversify its business, but the lockdowns could still have a significant impact on its bottom line.

VI Analysis – Alibaba Intrinsic Value

Company fundamentals are important indicators of a company’s long-term potential. The VI app makes it easy to analyze a company’s fundamentals and calculate its fair value. Based on the analysis, the fair value of Alibaba’s shares is around $255.5. However, the stock is currently trading at $89.5, which represents a 65% discount.

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Summary

The company has also been forced to lay off staff and cut costs in order to weather the storm. Investors are understandably worried about Alibaba’s outlook as the pandemic continues to ravage China and the rest of the world. However, Alibaba remains one of the most well-positioned companies in the world to weather the storm and emerge even stronger on the other side. The company has a massive user base, a strong e-commerce platform, and a vast logistics and delivery network. It also has a huge cash pile to draw from if needed. Alibaba is a long-term play, and investors who are patient and have a long-term time horizon will be rewarded for their patience.