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Holy smokes i just bought over $22,000 worth of alibaba shares ticker symbol baba so i want to go through all this with you guys here today i want to show you the amount of shares i bought what price i bought those shares that i also want to give you the three core reasons on why i bought so many shares here today okay usually i don’t buy this amount of money all
In one day but there are three core reasons on why i decided to go ahead and do this this company by the way is report numbers in about a week or two so that’s gonna be very big i’m kind of like crossing my fingers and hoping it goes down i would love to build alibaba into a six-figure position so we’ll go through the three reasons on why i want to do this hope you
Guys really enjoy this today so first off i bought 40 shares in my public account so public account anybody on my private stock market membership group can see that by the way i sold off a ton of shares of i sold off all my shares of one stock in particular if you want to get my private stock market membership group all hit i’ll pin the comment down there for
The link to it and also give you guys half off if you want to take advantage of that but in that account i bought 40 shares one hundred and seventy seven dollars seventy seven cents i love that all those sevens it must be the vegas in me i love all those sevens guys that’s good luck right there so 71 hundred dollars in that account and then my another account i
Bought 85 shares one hundred and seventy eight dollars i paid in that particular account and that one i bought over fifteen thousand dollars worth they’re basically making into a twenty two thousand plus dollar position once again this is kind of uncommon for me to go and purchase as many shares in a day usually when i start adding positions in stocks it’s usually
Two to five thousand dollar positions but being that i feel like this company so undervalued we’ll get into why i feel so undervalue here in a second but being that it’s i feel that it’s so undervalued that in their reporting numbers in a week or two that i’m like i’ve gotta buy i gotta get a big stake in this company built just in case it shoots up after earnings
His last thing i wanted to do is be like all hold off on buying even though i feel it’s a great deal here i hold off on buying it shoots up on earnings and then i never buy because i’m like oh maybe it’ll come back down then i just don’t end up buying or something like that so i’m like i wanted to get a big stake built already and then hopefully it goes down on
Earnings and i can you know make this in a monster monster position but we will see as time goes on first off the first reason why i love this company is this company it has an unbelievable long-term vision you can tell this vision by listening to 2017 investor day okay every single person on their team has an unbelievable long-term vision every single person on
That management team jack ma has instilled a culture of long term vision this is reason number one of three why i invest in this company of all the companies i own i don’t own any company that has this type of long term vision these guys are so focused on the next five to ten years in building this business and you can understand why this company is worth nearly
A half a trillion dollars it should be worth a trillion dollars right now by the way you can see why this company is built into such a massive beast because these guys are so focused on the long term so focus on hard opportunities long term opportunities that this is why this type of company has been built up and this is why they will succeed in the future every
Single person on the upper management team from the the ceo daniel zane from the cfo which cfo maggie wu by the way most cfos they don’t even talk about long term vision they’re just all about short term numbers i was amazed to listen to her she sounded like another splitting image of jack ma talking up there it was amazing it was amazing to hear and so powerful
Because it’s coming from a cfo and see if those are usually the most boring people in the world they’re all about what’s going on the short-term numbers she just you can just tell there’s a culture of long term in this company and that is amazing because very few companies have this in jack ma who’s the executive chairman is one of them pretty much the face of the
Company all right this guy is an unbelievable visionary and has such a great job of execution that he does okay so it’s one thing to have long term visions and be like we’re going after this thing it’s another thing to execute on those those long term visions you have he’s done a phenomenal job the culture he’s instilled in this company that i feel like even even
A day you know i don’t know when he’ll actually leave the company as far as executive chairman maybe will be five years from now 10 years from now 20 i don’t know when it will be but i feel like this is a type of company that he’s instilled the culture so well that i feel like they’ll be who they’ll do well into the future so almost like steve jobs did with apple
Okay many companies it’s hard to instill a culture like that i like steve jobs did an amazing job with apple on his return he really understood that if this company’s gonna last for the long term i got it instill a culture into this company jack ma has done this a hundred percent with alibaba in my opinion so if jack ma was to go away tomorrow it would stink but
At the same time like i feel like this company would be just fine reason number two why i bought these shares is because this company is experiencing phenomenal growth okay it’s amazing how big this company is and the type of numbers they’re putting up we’re talking about sixty one percent year-over-year total revenue growth sixty one presents sixty two percent
Year-over-year core commerce revenue growth all right look at the cloud revenues up a hundred and three percent year-over-year are you flipping my flapjacks they’re flipping it correct oh goodness guys look at the consumer number six hundred and seventeen million mobile monthly active users with this company all right unbelievable numbers look at every single
Category across the board is doing phenomenal with this company okay china commerce retail up 56% china commerce wholesale up 28% international commerce retail up 63% international commerce wholesale up 13% alright they’re logistics services a new business that’s why you don’t see a number of the year-over-year there there’s a new business they acquired their
Other category up a hundred or 1% cloud computing up a hundred and three percent digital media entertainment revenues up 34 percent and another category up over 8 percent there guys meaning 61% revenue growth year over year this is a type of revenue growth that you would expect from a start-up a very small startup company out of silicon valley or something that’s
Got venture capital money not a company that’s worth nearly a half a trillion dollars guys this is amazing stuff this company’s doing all right look at the net income this is a company that’s still not even really focused big-time on net income but net income is still increasing very fast all right 35 percent year-over-year up on the net income non-gaap diluted
Eps of 32 percent year-over-year in once again this is not a company that is focused on profitability yet as far as they’re a very profitable company already but in let’s maximize our net income let’s maximize our eps this company’s a long way from from there right now this is a company i still very focused on massive massive growth okay kind of like an amazon is
But in my opinion this company should be valued more than amazon because their growth is actually more impressive and as far as profitability they’re actually more impressive in the profitability category as well so if we look here alright the only the only segment of this company that is really bringing in a you know a net income right now is the core commerce
Category the cloud computing company are part of the business they’re not even focused on making money there yet they’re just focusing on revenue growth there alright because that’s a huge opportunity that they’ll be able to expand into digital media entertainment that’s a drag on the business right now innovation of initiatives that’s another drag in the business
So those are all drags on the business right now but on the cloud computing side and especially on the digital immediate entertainment side those are going to be unbelievably profitable businesses long term over the next five or ten years they just haven’t turned on the profit engine that they’re worried about growing it growing it groaning acquiring customers
Getting everybody into the system and then they can worry about profit more long-term right now it’s all about revenue growth there so when i look at long term cloud computing when i look at their digital media and entertainment those are gonna be straight profit engines five to ten years from now we’re just gonna put to push this company’s profitability up to
Who to the higher and higher levels okay then you got retail on top of that that’s expanding very fast and that’s already a very profitable business it’s amazing guys the third reason why i ended up buying these shares is because it flat-out this company’s undervalued okay this company right now you would think you would think it would have a 4pe in maybe 40 to
50 range if not 60 plus because of how much growth this company has no the forward p/e on those companies and the 20s are you kidding me or are you kidding me guys it’s like a joke are you kidding me you’re so you’re telling me there’s companies grown revenues across the board 50 60 plus percent you’re telling me i’m getting this company for 4p in the 20s you’re
Telling me that this is a management team that has unbelievable vision notice how to execute on long-term vision i’m getting this company for the for this i’m not a price like this is a joke to me guys this is an absolute joke it one of the best deals i feel it’s a probably the best yeah man so fit i know i said last week or a week ago or whatever two weeks ago i
Said facebook’s probably easiest money apple is probably a second easiest money in the stock market i would say alibaba is probably second or third easiest money to make in the stock market is right around there with apple in terms of the how like like it’s almost a no-brainer you’re getting a company here that 4p you know this company should be valued like more
Than is this is a high-growth company this is a high high growth company with much less risk than most businesses have there that are highly growth because most businesses that are that are high-growth like this growing revenues 50 60 % what do we know about them most of them don’t make any money okay they don’t have any profitable segments all right this company
Has a massively profitable business already and it’s saying we’re gonna funnel those profits into these other businesses and grow those and grow those and grow those over time so it’s an unbelievable opportunity you know i’m looking forward to hopefully building this into a bigger and bigger stakes we got $22,000 so far in it and like i said if it goes down on
Earnings i hope it does and i will be loading up probably another 20,000 plus after earnings and another 20,000 after that and we’ll build it into probably a six-figure position but for right now i’m very happy with that one i think will do great long term i would love to hear your guy’s opinion down there in that comment section on what you feel about alibaba by
The way make sure if you want to get my private stock market membership group i’ll have a link down there as a pink comment if you’re interesting doing that i’ll let you in today for half off so hope you guys enjoyed this as always thank you for watching have a great day
Transcribed from video
I JUST BOUGHT $22,253 OF ALIBABA STOCK By Financial Education
