Below is a chart and brief excerpt from today's Early Look written by China analyst Felix Wang.
|
Meanwhile, I’ve turned positive on a stock that I’ve been negative on for a while– Alibaba (BABA). BABA has an opportunity to reinvent itself and solve many pain points if it can partner with Tencent, including its soaring customer acquisition costs. It's important to note that BABA needs Tencent more than Tencent needs BABA. I outlined all the scenarios of this potential unprecedented partnership and laid out 13 reasons why BABA needs this partnership to China Pro subscribers earlier this week. The deal could also change the face of the entire Internet industry. Furthermore, investor sentiment on BABA is finally not overly positive anymore, and short interest volumes on BABA is at all-time highs. In the meantime, if it’s raining outside, stay at home, listen to some cozy music, and read something interesting– maybe China research. Give China Pro a try – click here. |
