28-06-2021, 01:47 PM
(28-06-2021, 08:20 AM)Choon Wrote: How do you assess Alibaba current multiples?
I think Free-Cash-Flow yield (about 5-6%) for it's current growth rate (30-40%) in gross profit is good enough indication for me that it is cheap. Net profits will work itself out.
https://stockanalysis.com/stocks/baba/fi...ls/ratios/
I'm not an investor in Amazon, but been a long-time investor in it's competitor in the e-commerce space: Shopify (since 2017). I think Amazon's business model, doesn't benefit stakeholders (specifically, third-party sellers, if they keep using the platform) long-term. Eventually, successful sellers would want to move away from Amazon, and sell directly to consumers, and Shopify helps people do that; reference:
Shopify Is 40% As Big as Amazon Marketplace (https://www.marketplacepulse.com/article...arketplace)
15 Biggest Companies That Use Shopify (https://finance.yahoo.com/news/15-bigges...57960.html)
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger