Atlantic Equities - Alibaba Group Holding Ltd. Sponsored ADR (A117ME) Core strength trumps aggressive investment

Report

Atlantic Equities

James Cordwell

Core strength trumps aggressive investment

Alibaba's Q1 results showed better than anticipated core ecommerce revenue growth and a resilient underlying margin. Given this stable core, investors will likely remain willing to look through the aggressive investments in new growth areas, though with losses widening in most 'non-core' areas and a planned step up in local delivery spending, patience looks set to be tested. However, we remain Overweight given an anticipated reacceleration in the core business, broadening longer-term growth opportunities and an increasingly attractive valuation.

24/08/2018 8 EN

Underlying

Alibaba Group Holding Ltd. Sponsored ADR

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US01609W1027 Stuttgart Stock Exchange Cayman Islands

Provider

Atlantic Equities

Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.

Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.

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Analysts

James Cordwell

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