Is Alibaba’s Stock Rally for Real?

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Alibaba’s ($NYSE:BABA) shares have risen 45% from their 52-week lows and investors are now wondering if it can continue rallying. Bulls argue that stock is a great investment as it’s undervalued at current levels, the Chinese government will come in its support and the retail consumption story in China will continue to drive growth. However, there are concerns that Alibaba’s growth may slow down as the Chinese economy slows down and competition from other ecommerce companies intensifies. There are also concerns about the company’s corporate governance, as Alibaba’s founder Jack Ma has a lot of control over the company. So, what do you think?

VI Analysis

Alibaba is a Chinese e-commerce company that is best known for its online marketplace, which connects buyers and sellers from all over the world. The company’s fundamentals reflect its long-term potential, and its fair value is around $279.8, according to the VI Line. Alibaba’s stock is currently trading at $112.1, which means it is undervalued by 60%.

Summary

Alibaba’s stock surged 6.6% on Tuesday, following a bullish note from Goldman Sachs. Alibaba is well-positioned to benefit from the ongoing shift to online shopping, and he expects the company to report strong earnings growth in the coming quarters.