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Technology Stocks : Alibaba Group Holding Limited
BABA 169.99-3.5%4:00 PM EDT

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From: galaxy89/22/2021 7:15:08 PM
   of 790
 
From Yahoo msg board: All the people bad mouthing BABA are the same people that think they are so smart paying 40-100 times sales for companies with negative earnings …. Currently earnings seem not to matter in this market, however at one point they always do.

Look at SE …. It’s worth $185 billion which is 46% of BABA market cap …. SE has trailing revenue of $4.4 billion and negative earnings

BABA has trailing earnings of $23.5 billion … yes that’s correct earnings not revenue. BABA has 5.34 times the earnings that SE has revenues.

So all the clowns thinking they are smart buying SE at an absurd valuations on any metric (even on a forward basis) and trashing BABA. Just remember earnings and valuation do matter at some point. I’d hate to be playing musical chairs when all of a sudden they do matter.

BABA is not a broken company, it is a victim of a broken sentiment. Over time sentiment changes and in the end when entering a long position valuation does matter.

So you can buy SE at 42 times sales with negative earnings and sky high expectations. Or buy BABA at 3.5 times sales, a PE of 18 and extreme low expectations.

I know which one I am more comfortable owning, do you?
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