Its Over, page-22544

...Alibaba's case shows why fundamentals alone do not guarantee stock price performance over time. More importantly, it is fund flows and its supporting (or non-supporting) narrative.
Alibaba has seen its stock lower by -20% compared to 9 years ago despite generating 6.3x much more profits.
...Why this disconnect? Back then in 2014, China was the rage and international fund flows moved in to buy the stock in a big wat as the stock also experienced great growth. Fast forward to today, international funds have divested away from China due to geopolitics, increasing concerns re: regulatory interference in the tech space in China, overwhelmed and more than offset company fundamentals as demonstrated by sterling company growth performance.  

...Another reason why when investing in TODAY's environment, old school single-handed focus on company fundamentals ala Warren Buffett does not cut it. One needs to understand Macros, fund flows, market narratives in addition to company fundamental outlook.

....Fundamentalists can cry foul, manipulation, idiocy etc etc all they like to express frustration over the disconnect, believing that Buy and Hold for Longer would necessarily put them in good stead, but must be prepared to endure years of subpar performance because they simply focus on just one part of market dynamics that seniors/boomers knew and grew up with.

...You can have the best stock in a shunned sector, and it is not going to move or go gangbusters, it simply would fall less.

Has there ever been a more frustrating name to own?

$BABA
~ 2014 Revenue: $10.1B Gross Profit: $7.8B
Price: $92

$BABA
~ 2023 Revenue: $130.4B Gross Profit: $49.1B
Price: $72

https://x.com/TrendSpider/status/1807179740224389550