We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Alibaba Group Holding Limited
BABA 169.99-3.5%4:00 PM EDT

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
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?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext