Knight Bridge Investment Consultants Limited – Alibaba Stock Rebounds – Time to Buy?

HONG KONG - Sept. 13, 2018 - PRLog -- Whilst initial reactions saw the stock trade lower, in just the last few days we have seen the stock regain almost 8%, closing Thursday at above $165 after falling as low as $153 during the first part of the week.

Looking at volumes we can surmise that there was significant profit taking in the period between rumor and the official details of the CEO's succession plans.

Now, Knight Bridge Investment Consultants expect the stock to continue its rally as its heads back towards it's highs of over $200 per share, and there are several reasons for this.

For all the bad that has been happening with BABA stock, there are still a lot of good things going on too. One of those things? Growth.

KBICL analysts expect BABA to grow its revenue more than 58% this year, followed by nearly 40% growth in 2019. That's some pretty intense growth for a $400 billion market cap company. If recent momentum continues, Alibaba could top this year's revenue number, as last quarter, the e-commerce juggernaut churned out 68% growth, racking up $12.23 billion in sales and beating estimates by more than $400 million.

Earnings are forecast to grow just 18% this year, as Alibaba continues to invest in its high-growth future. In 2019, those expectations accelerate to 35% growth. Based on this year's expectation for earnings of $5.68-per-share, Alibaba stock trades at a somewhat reasonable 27 times earnings.

While some investors will find that valuation too high, others recognize the value of BABA's brand, its high-growth engine and the massive end market that Alibaba caters to in the incredibly large Chinese e-commerce market.

Admittedly, CEO Jack Ma was worth a premium, given that he took Alibaba from a site he ran in his apartment to one of the world's largest companies. In that sense, he's like Jeff Bezos of Amazon, quite an apt comparison.

Knight Bridge Investment Consultants continues to hold a Strong Buy rating on Alibaba Holding Limited.

To find out more information on the opportunities Knight Bridge Investment Consultants see's with Alibaba and other Chinese companies listed in the US markets, visit www.knightbridgeinvestment.com or contact us at info@knightbridgeinvestment.com for further information.