2 Reasons Investors Should Still Be Wary of Alibaba Stock, Despite Recent Revenue Increase
Recent earnings results from Alibaba Group Holding (NYSE: BABA) showed a return to growth. With a double-digit increase in net sales, a massive profit surge, and an increased emphasis on artificial intelligence (AI), Alibaba might appear ready for a comeback.
However, it has failed to bring long-term investor returns. And despite respectable earnings in the second quarter of 2023, investors should consider avoiding the stock for two reasons.
Alibaba might seem like a no-brainer buy when looking at its earnings in the second quarter of 2023. Its $32 billion in revenue rose 14% from year-ago levels. Operating margin was 18%, up from 12% in the year-ago quarter. This helped the company earn net income of $4.6 billion, an increase of 63% from the same quarter last year.
Source Fool.com
Alibaba Group Holding Ltd ADR Stock
The stock is one of the favorites of our community with 49 Buy predictions and 2 Sell predictions.
With a target price of 104 € there is a hugely positive potential of 50.94% for Alibaba Group Holding Ltd ADR compared to the current price of 68.9 €.
