Where to Fade BABA and Buy Back off of High Conviction Macro Support

Alibaba: Poor 4Q Compared to JD.com and PDD

Dada Nexus IPO: All That Glitters Is Not Gold

Softbank’s Stake Sale Will Be a Good Litmus Test of Alibaba’s Valuation

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Alibaba: The Growth Potential of International E-Commerce Operations Is Enticing

Equity Analyst, LightStream Research

Supun Walpola

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Forensic Accounting

Alibaba Group Holding  / Forensic Accounting

<p>Alibaba’s rather questionable accounting and corporate governance practices are often overlooked by investors given the company’s strong FCF generation. However, Alibaba is seemingly spending around 32% of its FCF (over the past four years) to make investments in private companies, that most of the time, Alibaba’s shareholders don’t have any clue about. Moreover, the fact that Alibaba is not treating some of these investments as equity investees (when there is evidence of clear influence) could also be inflating the company’s bottom line.</p>

Alibaba’s rather questionable accounting and corporate governance practices are often overlooked by investors given the company’s strong FCF generation. However, Alibaba is seemingly spending around 32% of its FCF (over the past four years) to make investments in private companies, that most of the time, Alibaba’s shareholders don’t have any clue about. Moreover, the fact that Alibaba is not treating some of these investments as equity investees (when there is evidence of clear influence) could also be inflating the company’s bottom line.

Alibaba Group Holding

Alibaba: Where Is FCF Spent?