The stock is down from ATHs for good reasons due to fundamental changes to the the risk profile of the company, and uncertainties regarding the potential for future success it may have moving forward.
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The negative CCP attention and ongoing regulatory risk remain in place and unchanged. That’s a reason for the stock to go down or trade flat, not an argument for upside potential.
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The fundamentals of the company are the same as they’ve been the last few months. No new revenue drivers or cost savings measures have been revealed that would indicate a change from the recent status quo. That’s an argument for the stock to trade flat or go down. Not an argument for upside potential.
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Investor sentiment remains unchanged. No new “buzz-worthy” events are coming up and no recent company news that I see promises to serve as a catalyst for increased investor interest or inflows.
So what’s changed? Anything?
Are these assumptions correct or did I miss something? What makes BABA an attractive investment to consider now, rather than a wait-and-see story which may or may not see upside in the near- to mid-term? Or should I assume this is a dead money play for the reasons stated above.
TL:DR
What’s the bull case for BABA besides “It was higher before, so it will be higher again” or “it’s already fallen a lot, why would it fall anymore?” Those are valid hopes, but not good reasons to think that a course reversal is imminent. Down to flat are the trends, so they’ll continue until they have reason not to. Opportunity cost says steer clear.
Submitted April 11, 2021 at 07:59AM by No_Werewolf_1214 https://ift.tt/3t7RzFa
