DBloodySolid
2022-03-27

$Alibaba(BABA)$BABA's share price DOWN? Congratulations.

Perplexed? For long term and value investors, this short term phenomenon should be celebrated. Why? Let me explain.

BABA just announced upsized $25B (Extra large coke and fries) share buybacks. 

Assume BABA has only 3 shareholders. The price to buyout a shareholder is $50. BABA use her profit of $100 to buy out 2 shareholders. If the price reduce to $30 per buyout, BABA buys out all 3 and even have $10 left.

Thus, for this period, the cheaper BABA share is, the more the $25 Billion can buy back. This will make long term holders much richer. Remember Ben's greatest words. Short Term voting machine Vs Long Term weighing machine. 

For the traders and punters, I wish you goodluck picking a side.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • BorisBack
    2022-03-28
    BorisBack
    中国不会允许巴巴失败。任何倾角和放大器;我在加更多。全面披露,我是长期持有。
    • CrystalRose
      对于中国股票TMR来说,似乎又是一个伟大的日子。祝所有上周五买入的人好运。:d
  • Joel Chua Hiang Yang
    2022-03-27
    Joel Chua Hiang Yang
    While i wouldnt say $Alibaba(09988)$’s moat is as strong as a $Alphabet(GOOGL)$ or $Apple(AAPL)$, it has achieved massive network effect that I dont see how it will not be a trillion market cap
  • vaztan
    2022-03-28
    vaztan
    We are waiting for a positive catalyst to propel Baba shares upward. Ukraine peace agreement with Russia should do it .
  • StayHome
    2022-03-28
    StayHome
    Yes, waiting to buy $Alibaba(BABA)$ share if the price continue to dip further …. [Miser][Sly][Onlooker][USD]
  • CatherineGunter
    2022-03-28
    CatherineGunter
    Why are Bears still wanking each other off? Are they forgetting we went from 70 to 120 just under 2 weeks ago?
  • HilaryWilde
    2022-03-27
    HilaryWilde
    Alibaba is not for short-term speculators.
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