Alibaba (BABA) Stock Could Deliver 220% or 24% Per Year For the Next Five Years From The Current Price

Summary

• Alibaba has become one of the most contested companies on Seeking Alpha, thanks to its worst bear market in history, causing a nearly 60% peak decline.
• According to 68 analysts, rating agencies, and the bond market, BABA's growth thesis has weakened, but not broken.
• Historically, BABA growing at 14% is worth 26X earnings, and it trades at 15.8 and under 12, including cash. It's 41% undervalued and a classic Buffett "fat pitch" blue-chip bargain.
• Over the next five years, analysts expect BABA could deliver 220% returns, or 24% annually, with 5X the risk-adjusted expected returns of the S&P 500.
• Charlie Munger has invested $67 million into BABA and I've bought $135,000 into this Buffett-style "fat pitch" speculative opportunity because A+ rated BABA is as close to a perfect speculative deep value growth investment as exists on Wall Street. As Buffett says, "When it's raining gold, reach for a bucket, not a thimble."

Whenever a blue-chip falls almost 60% very quickly, it's natural that bulls and bears will debate whether it's a value trap or potentially the buying opportunity of a lifetime.

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Source: seeklingAlpha