(MEMO) Memo - Alibaba
By: Wilson
Last week Friday, I wrote a memo titled, "Memoirs From A Beaten Down Energy Investor." In it, I expressed my frustration with my energy investments. This led me to start looking at ideas outside of the energy sector, and I can't help myself but gravitate toward the Chinese tech sector, which has just gone through (or is still going through) the current bear market (started in Q4 2020).
For many of the people looking at Chinese tech giants like Alibaba, Tencent, Baidu, JD, and etc, the last 3-years have been painful. I would say that no investment could be as painful as energy, but I think Chinese stocks and Chinese tech might be up there.
Judging by the dismal performance, it's no surprise that a lot of the people on Twitter and the people I talk to are all shunning Chinese tech. Political issues, governance, China's broader economy, and a whole host of issues arise when you bring up investing in Chinese tech. Shit, even magazine covers are starting to talk about the demise of Chinese tech.
But I think I'm going to be a bit of a contrarian here and offer my view of why I think Alibaba is a potential long. I don't own any stock yet, but I am looking at the name closely. I am also looking at other names in the sector, but this memo will be centered around Alibaba.