7 Undervalued Stocks That Wall Street Is Mistakenly Ignoring
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 06 2024
0mins
Should l Buy BABA?
Source: Business Insider
Undervalued Stocks: The article discusses several undervalued stocks that investors may consider, including Taiwan Semiconductor, ASML, GigaCloud Technology, TotalEnergies, Baytex Energy, Ferroglobe, and Alibaba, highlighting their current sales multiples and potential for growth despite recent market downturns.
Investment Strategy: It emphasizes the riskier approach of investing in undervalued stocks, suggesting that while safer investments yield lower returns, taking calculated risks can lead to significant rewards, especially in uncertain economic conditions.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 158.730
Low
180.00
Averages
203.09
High
230.00
Current: 158.730
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Government Spending Stimulus: The Chinese government has allocated approximately 2.05 billion yuan for 'New Year gift packages,' including consumption vouchers and cash red envelopes, which will directly stimulate household consumption and drive growth in sectors like dining, shopping, and tourism.
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- Online Travel Agency Opportunities: Online travel agency Trip.com Group is anticipated to benefit from robust travel trends during the holiday, as improved booking patterns and a shift towards premium travel options support a positive outlook for overall travel spending.
See More
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- AI-Driven Performance: Analyst Robin Zhu from Bernstein noted that while the China Internet sector has had a lackluster start to 2026, AI advancements remain a key driver of relative performance, particularly with Alibaba's Qwen introducing agentic services that support the company's outperformance.
- Tencent's Challenges: Despite Tencent delivering solid AI ROI through its ads and gaming businesses, its chatbot development has faced scrutiny; Bernstein believes that Tencent's shares still offer a positive risk-reward profile as earnings compound and more AI-enabled services are introduced.
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- Regulatory Environment Impact: Zhu pointed out that while Alibaba's AI optionality remains significant following the Qwen3-Max-Thinking launch, the complex regulatory backdrop and recent investigations may weigh on market sentiment, although recent pullbacks could improve the risk-reward profile.
See More
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- Changing Consumer Landscape: The traditional Chinese luxury consumer, known for their brand obsession, is fading away.
- Emergence of a New Generation: A new group of savvy shoppers is rising, valuing shopping intelligence and experience over mere brand loyalty.
See More
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- Regulatory Compliance Demand: China's State Administration for Market Regulation summoned leading internet platforms like Alibaba, Baidu, and JD.com, mandating strict adherence to anti-unfair competition laws, e-commerce laws, consumer rights protection laws, and pricing laws to ensure fair market competition.
- Warning Against Cutthroat Competition: The regulator urged companies to eliminate 'involution-style competition,' which refers to cutthroat rivalry, and called for collaboration to maintain a healthy market environment, promoting sustainable development and industry stability.
- Participating Companies: Other firms such as ByteDance's Douyin, Tencent, Meituan, and Taobao also took part in the discussions, highlighting the regulator's focus on the entire industry and the importance of compliance.
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See More
