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# Alibaba: Nothing Has Changed To Make Buys Compelling (Archive)
- URL: https://www.huntingalphas.com/alibaba-nothing-has-changed-to-make-buys-compelling-archive/
- Published: 2024-06-14T11:34:00.000Z
- Updated: 2026-02-27T11:28:08.000Z
- Description: Alibaba remains a value trap without clear sales or margin recovery catalysts yet.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, BABA, Consumer

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- I have been skeptical of buys on Alibaba. It looks like this view has been accurate so far; since my last update, BABA has lagged the SPY by 12.13%.
- Revenue growth is still lackluster, particularly in the most relevant segment of China Commerce, due to a reduction in take rates and customers' preferences for lower-priced items.
- I had mentioned margin expansion upside as a key upside risk in my last update. But this is not playing out so far, except in the Cloud Business.
- Valuations, of course, continue to be low, but I believe this is insufficient as I require a strong sales rebound catalyst to justify fresh buys.
- Major investors continue to be bullish on Alibaba, including David Tepper's fund, which now has the stock as its largest holding. But I prefer to not fight the bearish trend until it starts to turn.

Read the full article [here](https://seekingalpha.com/article/4699260-alibaba-nothing-has-changed-to-make-buys-compelling?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*