Alibaba Group Holding Limited was the largest IPO in history and expectations ran high. Shares initially soared but have now slid 43% year to date. The company has disappointed investors with four earnings misses in a row. Investors are also jittery over weakness in the Chinese economy extending to Alibaba’s business.
Even though earnings are still expected to rise 23% this year and 36% next year, analysts have started cutting earnings estimates for both years.
Despite the shares falling, Alibaba isn’t cheap. It still trades with a forward P/E of 34. It’s a Zacks Rank #3 (Hold).
How far will shares fall? Are they a deal here?
Watch our short video below as Tracey and David debate whether or not investors should buy the shares here.
Follow us on StockTwits: http://stocktwits.com/ZacksResearch
Follow us on Twitter: https://twitter.com/ZacksResearch
Like us on Facebook: https://www.facebook.com/ZacksInvestmentResearch