News Update on Alibaba (9988.HK) - October 2021

Readers of this blog are aware that Alibaba is one of the few growth stocks which I hold in my portfolio, and I have an article on the valuation of Alibaba stock, estimating the Intrinsic Value, Margin of Safety and Return on Investment. In this article I would like to share some recent news updates on Alibaba, courtesy of AAStocks.

Charlie Munger almost doubles down on Alibaba stocks.

It is reported that the Daily Journal, a media company owned by renowned investor Charlie Munger, has increased their holdings of Alibaba stocks by 82.7% in Q3 of 2021 at an average price of 182.3US$. Shares of Alibaba closed at 177.18US$ on 20th October 2021. This gives us an opportunity to buy into Alibaba at a discount to the recent price paid by the Daily Journal.

Alibaba develops their own custom server chips for Data Centers

Alibaba recently launched the "Yitian 710" processor for their Data Centers. The chip is a 5nm 128 core CPU based on ARM RISC Architecture. According to Jeff Zhang, President of Alibaba Cloud Intelligence, adoption of the Yitian 710 is expected to yield significant improvements in performance and energy efficiency of the Alibaba Cloud Data Centers.

Recent target prices for Alibaba by major US Brokers.

Morgan Stanley rates Baba overweight and places a price target of 220US$ for Baba shares trading in New York. This is equivalent to 213.80HK$ per share for Alibaba stocks (BABA-SW 9988.HK) trading in Hong Kong.

Goldman Sachs retains Alibaba on its Conviction Buy List and sets a revised price target of 246HK$ per share for Alibaba stocks (BABA-SW 9988.HK) trading in Hong Kong.