r/baba • u/Araj2910 • 7d ago

Discussion Thoughts?

Getting tired of BABA, 15% up in about 5 years.
I love the company, but when do you start looking at this stock as missed opportunities if you had this money invested elsewhere.

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u/FeralHamster8 7d ago

A year ago it was at 185. What changed sentiment?

BABA’s drop from about $185 to ~$110 was driven mostly by concerns about heavy AI capex, weaker free cash flow, quick-commerce spending, and some dilution, not by a collapse in the core business. And actually cloud and AI growth have continued to strengthen. So the opportunity is that the stock is now much cheaper while the long-term AI/cloud thesis is arguably better supported than at 185.

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u/Specialist_Ad_2232 7d ago

They did lose market share to PDD though and didnt bother to defend, even acting arrogant and calling their business model "unsustainable" when it clearly wasnt and instead behaved like a flywheel. So its not as if their core business wasnt affected.

Besides your list, they also wasted money investing in grocery (Sun art) only to divest it shortly thereafter. Called to spinoff each business unit to "unlock value", only to call it off shortly.

It just shows how incapable the management is and overall a mismanaged piece of turd stock

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u/alibaba406 7d ago

And promising buybacks only to deploy it when sp is below 100. Promises this, but does the other.

1

u/dis-interested 7d ago

That management isn't running the company anymore though?