It doesn't feel like the right time to open a position yet. The valuation has already priced in Alibaba's offensive. However, the erosion by Douyin might eventually lead to the loss of the in-store business, which is the major profit driver. The negative impact of this part hasn't been fully realized yet. Actually, Xiaoxiang is very good, but it's a very long-term play, and currently, it's not a good time to open a position either.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.