Clearly, last week’s sharp stock market decline was unsettling. At the start of this week, the Dow had slipped 3.2% lower since the previous Monday’s close. However, the broader indices recovered nicely yesterday, and things are looking much the same today. That’s why it’s always a good idea to have a few rock solid companies you’re looking to buy on dips. In today’s blog, I’ll share with you one of my favorite stocks for right now…
Founded in 1999, Alibaba Group Holding Limited (BABA) is China’s largest online and mobile commerce company, offering solutions primarily for businesses. The company operates through four businesses spanning core commerce, cloud computing, digital media and entertainment, as well as innovation initiatives.
In addition, Alibaba operates several platforms and programs, including Alibaba.com, the wholesale online marketplace recognized as China’s Amazon.com. Plus, the company also offers big data analytics and a machine learning platform.
What’s most exciting for us right now, however, is that Alibaba, which has already invested $2 billion in Chinese online mall Lazada Group, announced last Monday that it’s pouring an additional $2 billion into Lazada Group. This brings Alibaba’s total investment in this subsidiary up to $4 billion. Also, Alibaba said that it will install one of its highest-ranking executives, Lucy Peng, as the Chief Executive Officer of Lazada.
Additionally, according to people familiar with the matter, Alibaba is looking into acquiring Daraz, a fast-growing Asian online marketplace. Currently owned by Rocket Internet, Daraz offers a broad array of retail products for consumers in Pakistan, Bangladesh, Myanmar, Sri Lanka and Nepal. In the end, both moves will bode well for Alibaba’s goal to expand into Southeast Asia and surrounding territories, all of which are becoming increasingly competitive areas for global e-commerce players.
This is particularly exciting for investors because in the most recent quarter, Alibaba’s revenue already soared 56% year-over-year to RMB 53,482 million, or $12.76 billion. Net income attributable to shareholders grew 35% year-over-year to RMB 24,073 million, or $3.7 billion.
Looking ahead, Alibaba lifted its fiscal year 2018 guidance during its February earnings report as well. The company now expects 55% to 56% annual sales growth in 2018, which is up from previous estimates for 49% to 53% annual sales growth.
Add it all up, and you can clearly see why, even with all the recent stock market volatility, Alibaba maintains a Buy-rating in my Portfolio Grader tool. However, before you go running out to pick up shares of Alibaba today, you might want to consider joining my Blue Chip Growth service.
My Blue Chip Growth members know the exclusive Buy Below price for Alibaba, as well as 40 other rock solid, top-tier companies. Plus, our strategy is effective, having beaten the market by nearly 3-to-1 for the past 19 years. Our strategy is simple to follow. I’ll bring you all the best Blue Chip stocks the market has to offer each and every week. And best of all, Blue Chip Growth can be yours right now 100% risk-free. I urge you to consider joining Blue Chip Growth today.