The Worst Mistake Alibaba Investors Can Make Right Now

Alibaba (NYSE: BABA) is often considered a solid long-term investment on China's booming tech sector. It owns the country's largest e-commerce and cloud infrastructure platforms, its ecosystem extends across the advertising, media, internet software, and gaming markets, and it consistently generates double-digit revenue and earnings growth.

Yet Alibaba has lost nearly a fifth of its market value over the past six months as regulators in China and the U.S. have scrutinized its sprawling business. Rising bond yields, which sparked a rotation away from higher-growth tech stocks toward value stocks, exacerbated that sell-off.

Analysts still expect Alibaba's revenue and earnings to rise 39% and 27%, respectively, this year, and its stock trades at just 19 times forward earnings.

Source Fool.com