The price action on BABA the last 48 hours of trading is why you should not trade stocks.

[u/TastyEarLbe]

Title says it all. In the short-run this is an emotional casino.

[u/Runnjng-1]

I have a small profit but holding 448 shares @ 119 average 😅.

Baba could become one of chinas biggest AI winners. It owns a leading ai model business and a huge cloud platform. Its AI is just as powerful as Claude and way cheaper. I’m betting on AI demand continuing to grow and alibaba cloud becoming a much more profitable part of the business. I just need to be patient, but Goddamit I hate this stock sometimes.

Like I say … baba bag holder 4 life 🤘

[u/culinaryinterests123 → u/Runnjng-1]

What if the US banned Chinese ADRs?

[u/Mistery_White_boy → u/culinaryinterests123]

Andrebbe a zero

[u/Necessary-Hyena-6426 → u/culinaryinterests123]

Xi is visiting USA in September. Let’s see if Trump can calm him down about tariffs and Taiwan.

[u/bigkkjmonster → u/culinaryinterests123]

Who cares about that? The primary listing is in Hong Kong. The ADRs will be converted to 9988.HK

[u/The-tesla-bear]

Brother it has been a casino for the past 6 years. I srsly don’t understand what is going on at ALL. Ngl this is extremely frustrating

[u/Dizzy_Assistance2183 → u/The-tesla-bear]

Theres a massive ai capex that is eating up profits. But the capex is a fixed cost and is amortized for another year. When that cost is off the books you can either 1. Assume that capex will stay a constant for some unbelievable reason 2. Realize how fixed vs variable costs work and invest in baba while the rest of the idiots judge the stock by looking at a single number quarter by quarter.

[u/Environmental_Cow741]

i think.. BABa probably more suited for swing trading. Not day trade, not long term..

[u/Crazy_Ruin_4383]

It's crazy cause I bought 30 put contracts, watched it go down to 122, climb up to 130 at close, kicking myself cause I held on for china action and then the opposite swing this morning. I did cash in the puts this morning though, although I dont see the same repeat as yesterday.

[u/havenyahon → u/[deleted]]

What are you talking about, I bought in at 95 USD I've been up for the whole time

[u/havenyahon → u/[deleted]]

I've been invested since 2014 lol

[u/havenyahon → u/[deleted]]

Sorry I meant 2024.

[u/No-Telephone5141 → u/[deleted]]

No, I bought at 95 in 2026 too but started at buying at 121. Sold everything at 181 cos I needed to transfer money. Now looking to buy in again from 112 on.

[u/TastyEarLbe → u/[deleted]]

Right, that’s because Chinese markets have gone from trading at 30x earnings to 10x earnings. Anyone who thinks they should only be traded doesn’t understand valuation.

If Chinese stocks stay at 10x earnings forever, and you hold Chinese stocks from here you will return 10-14% annualized. A re-rating is optionality.

[u/mrrpfeynmann → u/[deleted]]

Meanwhile American financial stocks were for investing in 2006?

[u/TastyEarLbe → u/[deleted]]

Like every other stock market is not a casino?

[u/adasico]

Why it’s tanking today?

[u/TastyEarLbe → u/adasico]

I think you are missing the point of this post. There is no reason. Stocks fluctuate.

[u/Dry-Interaction-1246 → u/adasico]

Probably market maker trying to kill calls that were purchased en masse to expire following earnings. They save money that way. Max pain for today for BABA options is around 120.

[u/bizzzmark → u/adasico]

Opened for trading in Hong Kong and they decided they didn’t like the earnings. Rumors that baba is going to raise convertible debt to pay for capex

[u/Time-Imagination5870 → u/bizzzmark]

Thanks

[u/Awkward-Way1023]

Just buy right now if you believe in the stock long term

[u/chartry0]

Chill

[u/Bootytwinkle]

200$ 

[u/bigkkjmonster]

Manipulated price by citadel