Rate Of ReturnI bought into Alibaba yesterday at US$125! With an average analyst price target of around US$192 (Yahoo Finance) and a consensus Buy rating, the risk-reward profile appears attractive. Today, Alibaba is +6% pre-market!
Alibaba has been benefiting from strong growth in its cloud computing and AI businesses, while easing regulatory pressures from Beijing have improved investor sentiment. The company is also returning significant capital through its US$25 billion share repurchase program, which runs through 2027. Combined with a reasonable valuation of about 20x earnings, I see potential for both earnings growth and multiple expansion.
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