March 6th 2023 Free Analysis - ALIBABA

Hey MPA Investors!

We're ending the first week in March already. Can you believe it?! Well then, let's jump right in:

THIS WEEKS' MOVERS SNAPSHOT

Alibaba (Stock Ticker: BABA) - Alibaba is the world's second largest online retailer. It's also China's largest retailer. Alibaba is China's answer to Amazon.

Why BABA?

The market size is HUGE! The e-commerce (online sales) market is expected to total $5.5 trillion once 2022 is all accounted for. That would total about 21% of total retail sales. Two years ago e-commerce accounted for only 17.8% of total retail sales. I'm sure you've purchased something online in the last few days and you're not alone. But what you may not know is that China accounts for more than 52% of that global e-commerce market and the US accounts for only about 19%. That makes the opportunity for Alibaba massive!

Why we feel there’s a buying opportunity:

1. Alibaba's revenue is expected to grow to over $185 billion per year in 2025 from $105 billion currently. It's cloud computing revenue is expected to jump up to $23 billion in 2025 from $8.9 billion in 2021. Since cloud computing has less costs associated with it, it's the most profitable part of the companies business.

2. The big banks agree that there's an opportunity here. Here's what each bank believes the stock will hit by end of year:- Bloomberg: $145.89- Deutsche Bank forecast $155 - Nomura set a price target of $138 - Morgan Stanley believes $150 - Credit Suisse set a price target of $152

CURRENT PRICE (as of this email): $90.80

TERMS YOU NEED TO KNOW

Annual Report -  It's the yearly record of a company's financial condition and performance that is distributed to shareholders like us.

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See you on Thursday!Thibaud & PhilipInteresting Financial Facts:  Unfortunately divorce happens. But did you know that it is most likely to take place in the first seven years? In which case your ex could not claim spousal Social Security Benefits. According to the law, you must be married ten years to qualify for those benefits.

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk. Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation. So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis. We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.