Once the most expensive stock in Asia, reaching $316/share and trading at 44 trailing P/E, the stock continuously declined after China announced a $2.8 billion fine for antitrust violation in November 2021.
The Chinese government concluded that Alibaba had "abused its dominant market position" since 2015 by preventing sellers from using other e-commerce platforms besides Alibaba.
In February 2024, the price of dropped nearly 80% from its 2020 peak, pushing the company's market cap to its all-time low, even on par with emerging rival PDD Holdings Inc.
Jack Ma's departure from Alibaba, along with the antitrust investigation and Ant Group's suspended IPO, caused Alibaba's revenue to plummet sharply.
After 3 years of decline with multiple restructurings, the stock has doubled sharply from the recent bottom in the past few weeks. With recent catalysts like policy changes, political stability, and extremely low valuation, is it time for investors to look at or not?
Today's article consists of 5 parts:
Overview of Alibaba
Alibaba's personnel restructuring
Alibaba's business model
Updates on Alibaba's recent changes
Financial Analysis
Business Valuation
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