Alibaba recently released their results which apparently disappointed the market and caused an immediate plunge of 10%.
I am sure by now that everyone knows the market is irrational and no one can forecast what the price can be in 1 months , 3 months or even 1 year's time.
Even the guru's or big boys' actions are conflicting.
Temasek trimmed their position but Charlie Munger, co -partner of Warren Buffet in Berkshire Hathaway actually loaded more quite recently.
So who's right , who's wrong?
If one were to read all the opinions in forums, one would be seriously confused.
Data from www.wsj.com/market-data/quotes/BABA/financials |
In 2017, Alibaba had a share price of US$140.
Now, Alibaba has a share price of around US$140 again.
But Alibaba is a much more valuable company now than it was in 2017, at least 3 times. Theoretically, its share price should be at least 3 times of US$140 in 2017 making it US$420 today...