1 Stock I Wouldn't Touch With a 10-Foot Pole -- and Here's Why
Not all stocks are created equal. While a few companies hold the potential to become the next Apple or Home Depot, many others will underperform the S 500 -- or even fall to $0.
Even companies that appear successful can eventually fall flat with investors. Such is the case with Alibaba (NYSE: BABA). Despite being called "the Amazon of China," it has seen nearly all its gains since 2016 effectively wiped out. With the continuing troubles Alibaba faces, it is not worthwhile for investors to take a chance on this internet and direct marketing retail stock. Here's why.
Admittedly, even stocks like Amazon face challenges and occasionally lose a large portion of their value in a down (or bear) market. In such cases, more savvy investors will take advantage of such situations and buy at a discounted valuation. That's not necessarily the issue I have with Alibaba.
Source Fool.com
Alibaba Group Holding Ltd ADR Stock
The stock is one of the favorites of our community with 41 Buy predictions and 2 Sell predictions.
With a target price of 109 € there is a positive potential of 49.73% for Alibaba Group Holding Ltd ADR compared to the current price of 72.8 €.
