Chinese stocks have been under heavy selling pressure lately, mostly because of investor concerns about the trade war and its impact on China’s economy and currency value. In this context, Alibaba (BABA) stock is down by nearly 32% from its highs of the last year.
On the other hand, Alibaba is growing at full speed, the company’s long-term growth prospects look as strong as ever, and valuation levels are fairly attractive for such a powerful growth business. For investors who can tolerate the short-term uncertainty in Alibaba stock, the recent adjustment in the stock price looks like a buying opportunity.
Alibaba Remains Solid
Judging by recent financial performance numbers, it’s hard to argue against the fact that Alibaba keeps growing at full speed as of the quarter ended in September of 2018.
Total revenue amounted to RMB85,148 million ($12,398 million) during the period, an increase of 54% versus the same quarter in the prior year. Growth tends to slow down as a company gains size over the years, and it’s hard to find companies that can sustain this kind of growth from such a gargantuan revenue base.
Alibaba’s different segments look quite healthy, and this is a major positive when it comes to evaluating the company’s ability to sustain performance going forward.
Annual active consumers on the company’s retail marketplaces reached 601 million during the quarter, an increase of 25 million new users. Mobile monthly active users reached 666 million in September 2018, an increase of 32 million over June 2018.
