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.
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