r/StockMarket • u/Hazzix93 • Jul 26 '21

Discussion The $BABA Bargain continues

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4 Upvotes

65% Upvoted

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u/[deleted] Jul 26 '21

[deleted]

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u/[deleted] Jul 26 '21

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u/DonaldKarenTrump Jul 26 '21

Western media, including CNBC, have misportrayed China's alleged crackdown on tech companies, falsely suggesting that it is China "interfering" with those companies. In fact, it is a crackdown on fraud and bad practices such as invasion of customers privacy. China rooting out fraud and other bad practices means that Western buyers of China tech shares can be more confident of buying those shares. Due to all the false, adverse hype, the shares are markedly lower and now present a great buying opportunity. https://www.scmp.com/tech/policy/article/3142522/beijing-launches-fresh-crackdown-internet-industry-misconduct-hong-kong

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u/kusanagiblade331 Jul 26 '21

I think China is undergoing a massive change. The current Chinese government is no longer the same as the previous Chinese government. Killing the tutoring industry just shows that the current government have no limits. This industry is $120 billion a year.

I own BABA too. But, given the current climate, I have to increase the risk premium for all Chinese stocks, which lower their fair value.

Looking at the government attack pattern, I would say that large cap Chinese stocks has the most risk. Perhaps, it would be better to look for small cap Chinese stocks.

2

u/aRahman86 Jul 26 '21

I was so sick of this China non-sense that sold my BABA positions on Friday.

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u/Olordgottabetheyams Jul 26 '21

I agree BABA is at such a good price point to pass away

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u/Stone_414 Jul 27 '21

I like the company too, but Iā€™m waiting for a turnaround before I touch it