Is Alibaba Group Holding Limited (NYSE:BABA) a Cheap Stock Considering the Struggling Economy?

Alibaba Group Holding Limited (NYSE:BABA), the world's largest online and mobile commerce company, has faced challenges in recent quarters, with revenue growth slowing and adjusted EBITDA declining. In the fiscal second quarter, revenue rose 5.2% to 236.5 billion yuan, below market expectations, while adjusted EBITDA fell 4% to 47.33 billion yuan. However, Alibaba's international retail segment saw a 35% increase in revenue, indicating potential for growth. Historically, Alibaba has maintained strong earnings growth, with adjusted EPS increasing by 30% CAGR from 2016 to 2021. Compared to industry peers like JD.com, Alibaba's earnings growth has slowed, but it remains a significant player in the e-commerce market. Despite these challenges, Alibaba's valuation appears attractive, with a forward P/E ratio of around 10, compared to the industry average of 15. Given the company's strong brand and international expansion potential, Alibaba may be a cheap stock considering the struggling economy, but investors should monitor its earnings and revenue growth trajectory closely.



In conclusion, Alibaba Group Holding Limited (NYSE:BABA) may be a cheap stock considering the struggling economy, given its attractive valuation and strong brand. However, investors should closely monitor the company's earnings and revenue growth trajectory, as well as the competitive landscape and potential regulatory challenges that could impact its international expansion. By doing so, investors can make informed decisions about whether Alibaba is an attractive investment opportunity in the face of a slowing Chinese economy and intensifying competition.