BABA Web Services

Any buyers here? I’m dipping in. With 187m in rev on WS, tons of room for growth and a virtually captive audience larger than the U.S. (Based on internet usage) there is room for massive expansion. Valuation is solid in IMO, given the growth.

Jim Cramer says sell though.

Up over 10% with SPY flat since trade. Suck it Cramer.

Up 23% since Aug 12, SP up 8%, Chinese market down.

Again, too bad Cramer

Who listens to Cramer? His performance is pretty much doodoo if you strip out all his IPO allocations.

for me personally it’s too expensive. but historically, it is trading on the cheaper side. relative to amazon, its cheap even when you take its smaller growth prospects. have you done work on their business? care to share?

No, I won’t share my own outlook. I will share historical facts.

-BABA web services is growing at triple digit y/y for its last seven quarters

-cloud unit recently passed $1b revenue.

  • AWS exhibits wonderful operational leverage and currently has a run rate of over $14b and is still growing 47%.

  • China is a huge market that is several years behind the US in this area.

  • this business is utility-like and lends itself to a winner take all model geographically.

btw i recently read some jim chanos opine on baba:

Nice guidance today, up about 40% from my $97.50 cost basis back in August. Unfortunately it’s in a taxable account…

You all sitting this one out?

yep. grats on the pick though. i had a few china tech killing it too. whats going on in china. where u at purealpha?

Good call. But with an inverting yield curve, I’m spending more time thinking about how to play defense versus playing offense with a Chinese stock

Sure, sure, but having enough security to have the ability to take risk is the way to make money.

You do some of that p2p lending stuff right? You know anything about Theorem?

Yes, but prudent risk. I would much rather buy Baba during stress than before. Just not familiar with China, but I think it takes more analysis than USA given the lack of trust in data.

Are you referencing the Cryptocurrency or something else? I’m vaguely familiar with Cryptocurrency broadly but not specifically enthereum

Nope, talking about SF based HF theorem.

Found them in Google when I put market place lending in the search. From the website, I would be skeptical. I think a lot of these guys are expert p hackers, the vast majority of which honestly belive their analysis (as opposed to doing it to deceive)

Well, it’s been a year and I’m out on the pop today. 70% return booked.I’m going to redeploy into one of those funds that guy posted that returns 10^8%…I mean, what could go wrong?

Sadly, he gets more credit/attention than research analysts who are actually good at their job.

You’ll be a billionaire by tomorrow.