r/baba
Just a reminder...
BABA's revenue and gross profit grew 12x and 6x since 2014 IPO, yet the stock price barely moved, suggesting severe undervaluation.
- Revenue has grown 12x since the 2014 IPO.
- Gross profit has grown 6x over the same period.
- Stock price has only increased by 1.03x, indicating a massive disconnect between fundamentals and valuation.
- 2014 at IPO intraday high $ 120
- 2015 revenue $ 12,29B , gross profit $ 8.47B
- 2026 revenue $ 148,40B, gross profit $ 54.51B while BABA @ $ 124
Since 2014 :
- Revenue 12X
- Gross profit 6X
- Stock price .....1.03X
What's wrong with this picture ???
If you’re going to call this “due diligence”, it would be better to compare market cap instead of share price
Yes and look at spaceX. Just because something ipo’ed at a price on par with today doesn’t mean it was not overvalued at IPO
the outstanding shares for BABA at the IPO were almost equal to what they are now, so adding the mcap is irrelevant IMO
I stand corrected…I had sworn I had looked at that before and seen that the shares outstanding had grown significantly, but looks like I was wrong!
Say it with me.
THE MARKET IS FORWARD LOOKING
your valuation doesn't mean shit if the market doesn't think growth picks back up
nobody cares about the past. Look into the future and present
I think most can agree baba was overpriced at ipo and underpriced today.
Not totally sure how the comparison serves us.
Last time i Check gross Profit went down Like crazy
Okay folks. This post has a good point , the price doesn’t make sense at all.
The potential is huge with the AI transition and like Dr Bury said “the price could double and still be cheap.”
I firmly believe in 2 years time the price will be $260 -$300.
Sentiment China 🇨🇳 Xi 💩
Dumb comparison. It could very well be that IPO was overvalued and now came down to more normal levels.
It’s not that but that a stock’s price is based on future expectations.
Right now earnings are a bit inconsistent quarter to quarter so the future is a bit uncertain.