Risks notwithstanding, Alibaba and Tencent look like a smart bet

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Alibaba Intrinsic Value – Alibaba($NYSE:BABA) and Tencent are two of the hottest stocks on the market right now. While there are definitely risks associated with investing in them, the potential rewards appear to be well worth it. These companies are a lot like Alphabet Inc was back in 2009 – they have huge potential and are well positioned to take advantage of the growing global economy.

Market Price

On Monday, Alibaba’s stock opened at $85.1 and closed at $87.7, up 1.4% from its last closing price of $86.4. This was despite a volatile day on the stock market overall. Both companies have been doing well recently, with Alibaba reporting strong revenue growth in its most recent quarter. Tencent, meanwhile, has been benefiting from the popularity of its messaging app WeChat. However, there are some risks to consider. For one, Alibaba is facing increased scrutiny from regulators in China. Tencent, meanwhile, is facing some backlash over its handling of user data. Nonetheless, both companies look like smart bets for the long term.

VI Analysis – Alibaba Intrinsic Value

A company’s fundamentals reflect its long-term potential. The intrinsic value of a stock is the present value of all future cash flows from the company, discounted at an appropriate rate. The VI Line app can help you calculate the intrinsic value of a stock. For example, the intrinsic value of Alibaba’s stock is around $252.6. This means that if you were to buy the stock today, you would be paying 65% less than what the stock is actually worth.

Summary

However, there are risks to consider before investing in either company. Alibaba is a massive e-commerce company that also has interests in other areas such as cloud computing and media. Both companies are growing rapidly and have a strong foothold in China’s vast and growing economy. However, there are a few risks to consider before investing in either company. First, the Chinese government has a history of cracking down on internet companies, and this could potentially impact Alibaba and Tencent. Secondly, both companies rely heavily on advertising revenue, which could be impacted by an economic downturn.