Alibaba has lost $344B market cap in the past year(economictimes.indiatimes.com)

51 pointsby paulpauper5 tahun yang lalu34 comments

economictimes.indiatimes.com

Alibaba has lost $344B market cap in the past year

https://economictimes.indiatimes.com/news/international/business/alibaba-has-lost-344-billion-in-worlds-biggest-wipeout/articleshow/87268271.cms

17 comments

mr2loco5 tahun yang lalu

Markets are always either overly optimistic or pessimistic. Looks like max pessimism to me now

hajile5 tahun yang lalu

"max pessimism" reminds me of the story of Mel

http://catb.org/jargon/html/story-of-mel.html

lotsofpulp5 tahun yang lalu

If you are referring to US markets, I would be interested to see what max optimism looks like if max pessimism is new record highs everyday.

p_j_w5 tahun yang lalu

I'm not GP, but I believe they were referring to Alibaba in particular, not US markets as a whole.

mr2loco5 tahun yang lalu

Yeah the US markets are far from any pessimism

thats prob closer to euphoria.

But Alibaba got really hammered down ( the stock ). No position for me but I follow the Company

tmnstr855 tahun yang lalu

https://en.wikipedia.org/wiki/Money_illusion

srib5 tahun yang lalu

Great time to accumulate $BABA.

Someone12345 tahun yang lalu

Maybe. Depends on if you agree/disagree with the wider market on the inherent problems with BABA and more specifically the relative insecurity/danger of Chinese government intervention.

I previously held BABA. I exited at roughly break-even. Furthermore, I won't re-enter for the same reason I exited, the Chinese government can and have ruined Chinese-born companies at the flick of a pen.

I think BABA has a good business. If the Chinese government leaves it alone it would be a great investment, but the more influential BABA is the less likely that seems.

PS - Plus do the risks and gains actually balance? The risk could be as much as your entire investment, and the returns are far lower than that.

Scoundreller5 tahun yang lalu

And $BABA is a “variable interest entity” if you’re buying it as an American.

You don’t really own any of the operating corp if you buy its shares, so you have both regulatory risk and contract default risk with ??? recourse.

https://www.wsj.com/articles/u-s-and-chinese-regulators-are-...

https://en.m.wikipedia.org/wiki/Variable_interest_entity

chrisjc5 tahun yang lalu

Not too familiar with it, and pretty concerned about the riskiness of owning it, but do you know if BABA is a Cayman Structure?

rootusrootus5 tahun yang lalu

And TSLA has gained a bunch. Just as meaningless.

endisneigh5 tahun yang lalu

Quality of life is the only meaningful metric. China's ultimate goal is to create bounded equality. Xi himself has implied their propensity has brought the country on a path they don't want and now they're trying to revert it back.

bingohbangoh5 tahun yang lalu

I used to think of Alibaba as the one legitimate Chinese company. Their product seems sound to me: we'll navigate the complex world of Chinese factory for you and take a cut off the top.

But apparently, most of their growth since IPO has come from mainland sales. Which seems to go against the narrative I just stated. Their Edgar SEC filings don't break out revenue as much as I would like. [0]

So are they a scam? The very opinionated Deep Throat IPO seems to think so. [1]

[0]: https://otp.investis.com/clients/us/alibaba/SEC/sec-show.asp...

[1]: http://www.deepthroatipo.com/alibaba-december-quarter-2020-r...

nscalf5 tahun yang lalu

A better way to look at this is that the risk presented by the Chinese government to Alibaba has increased, so that has to be discounted against future cash flow. The market cap reflects an increase in external risks.

pixel_tracing5 tahun yang lalu

Xi is trying to force a centuries long transition into a single decade, laughable to say the least

sharadov5 tahun yang lalu

Xi's reforms are not just a flash in the pan or motivated by his desire to reign in some rogue companies, it seems like there is a fundamental shift in policy - moving away from free wheeling capitalism which has lifted millions out of property but has also come at a huge cost - loss of cultural and family values and corruption. Xi wants to re-align with socialist values, which is a good sign for the country. But, it remains to be seen how he can successfully maneuver the country in that direction.

HKH25 tahun yang lalu

The Cultural Revolution was partly about promoting a "loss of cultural and family values" (reporting your parents etc.), so that the state could have more control. The CCP has always been corrupt, and its leaders have always wanted more control.