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Is AliBaba Stock Undervalued?

The cloud business has already delivered a strong performance. For FY2020, the company reported 50% year-over-year growth in the segment, with the business also seeing positive adjusted EBITDA for the first time.

Alibaba (NYSE:BABA) is often considered a solid long-term investment on China’s booming tech sector. It owns the country’s largest e-commerce and cloud infrastructure platforms, its ecosystem extends across the advertising, media, internet software, and gaming markets, and it consistently generates double-digit revenue and earnings growth.

Alibaba’s stock might look undervalued, but investors should always be skeptical of analysts’ estimates, especially when it comes to a company that still faces so many headwinds. Alibaba isn’t headed off a cliff, but the worst mistake investors can make right now is to assume the worst is over.

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