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Long awaited earnings season of $Alibaba(BABA)$$Alibaba(09988)$ finally released, and boy was it a disaster. The stock plunge 10% the moment earnings were announced. 

But is the earnings really that bad? Lets take a deeper look at it:

●Revenue was RMB200,690 million (US$31,147 million)from 155B, an increase of 29% YoY.

●Aggregate revenue of our international commerce retail and international commerce wholesale was RMB15,092 million (US$2,342 million), an increase of 34% year-over-year.

●Cloud computing revenue was RMB20,007 million (US$3,105 million), an increase of 33% year-over-year. 

●Income from operations was RMB15,006 million (US$2,329 million), an increase of 10% YoY.

●Net income attributable to ordinary shareholders was RMB5,367 million (US$833 million) and net income was RMB3,377 million (US$524 million). Non-GAAP net income was RMB28,524 million (US$4,427 million), a decrease of 39% year-over-year. 

●Netcash provided by operating activities was RMB35,830 million (US$5,561 million). NonGAAP free cash flow was RMB22,239 million (US$3,451 million), a decrease compared to RMB40,540 million in the same quarter of 2020, mainly due to a decrease in profit as a result of our increased investments in key strategic areas.

●Company has done a share buyback of USD 5 Billion year to date and it seeking to buyback another USD 10 Billion worth of shares. 

●Company has forcasted a 23% revenue growth for the year 2021. 

Whats my take on this results? Is it bad?

In my opinion, the Q2 result is acceptable and reasonable. Revenue has grown, but unfortunedly due to some losses in investment, the net profit has taken a hit. However, it is completely normal for business to have up's and downs. You have to understand that business is not always going up, there are days where it has bad results. 

Overall on a long term basis, I believe the company is poised to grow very much better. Baba has very strong fundamentals and in 2020, Alibaba was the 13th most highest profit company in the world, beating $Amazon.com(AMZN)$ and even Tencent. 

My opinion would be as Warren Buffet says "Be greedy when others are fearful"

Now that BABA has dropped somemore, it is a good bargain for value investors. Dont forget to add it in your portfolio. This company has a very strong moat, very strong cash flow, and is poised to be the next Trillion Dollar company.

Dont forget that Baba is also now creating the most advanced semiconductor and Chips, and its also a huge contributor to China Smart City. This will bring in a whole new revenue and earnings in future.