 Imagine you keep on investing in a company for the past 5 years and today when you wake up, you still see a portfolio in 50% loss? That's what's happening to Alibaba. To add SOC to the wound, the company had negative earnings in the most recent quarter. The losses made investors question, has Alibaba lost its age? Is it time to sell Alibaba before it gets even lower? Well, let's find out in this video. Hi everyone, Chloe here and welcome back to my channel. The only one place for you to learn about stocks, investing, as so as option. If it's the first time of you coming to my channel, remember to hit the subscribe button as well as the notification bell so that you will not miss out any of my future investment updates. An early thumbs up is also appreciated because I will tell you two algorithms that you find this video helpful and it will help to push out to more people to inspire them to start investing safely. And in this video, let's talk about Baba. In recent years, investors are increasingly disappointed by Alibaba's performance. The company's earnings has been decreasing significantly since 2021. In the most recent quarter, Alibaba even suffered a 22 billion losses in RMB. What? But before you decide to jump ship and sell away your stocks, because upon close inspection, Alibaba is still a profitable company. Its total revenue still grew 3% year on year, reaching about 207 billion RMB. Most aspects of business have enjoyed consistent growth with the exception of China Commerce, which experienced a 1% drop in revenue year on year. This could primarily deal to China's zero COVID policy, which has severely impacted the logistics and supply chain. But with the China's border reopening, the situation is set to improve. Now let's take a look at its losses. Alibaba attributed the shift from profit to losses to an increasing in net losses resulting from the decline in market prices of equity investment in publicly traded companies and the reduction in shelf results of equity method investors. The substantial drop in valuation was mainly linked to its controversial financial unit, and financial. So if you disregard the investment loss and look at the non-gap reporting, the company will have achieved a 19% year on year growth in terms of profit, totalling 33.8 billion in RMB. Apart from its profitable e-commerce business, Alibaba has another growth engine, Cloud. China has made significant progress in transitioning to cloud computing, and now processes the world's second largest market share. It's projected that China's public cloud will grow at a staggering pace, more than doubling from $32 billion in 2021 to more than $19 billion by 2025. Currently, Alibaba holds a market share of 36% in public cloud in China, with 8% of its revenue generating from cloud. While Alibaba is operating at its break-even point right now, as it continues to scale, it can stop bringing substantial profits to the company, very much like AWS to Amazon. So as the cloud industry continues to grow in China, it has the potential to boost Alibaba's both top and bottom line. But I know, you must be thinking, Alibaba has so many competitors, what if it got overtaken by others? Well indeed, that's a valid concern. But we also cannot deny that Alibaba's competitive advantage is enormous. Despite competition, Alibaba has achieved 90% retention for its core annual active consumers. Additionally, Baba owns one third of Alipay, which is responsible for 54% of all payment in China. So competitors like JD in e-commerce, Huawei in cloud computing and Tencent in payment are all trying to catch up with Alibaba. Do note that none of them operate in all three areas, while Baba is the leader in each category. So in the Chinese tech sector, Alibaba is in the class of its own. So is Alibaba a good time to buy right now? Let's take a look at the company's valuation. Due to the recent drop in net income, Alibaba's PE ratio has been pushed to 48 times, which seems really hard. However, just like we mentioned earlier, the current earning is not the true representation of the company's earning ability. It is therefore not accurate to look at the PE ratio right now. Instead, we can look at other ratios like PB ratio, price to forward earnings ratio, and based on these two metrics, they are both below the 5 year average. Which means that Alibaba could be presenting a good entry point right now. Another way to put Alibaba's valuation into perspective will be looking at its stock price. In 2014, Alibaba IPO at about $90 a share. And after 10 years of growth, the stock price dropped below its IPO share price, trading at only $87 per share right now. It literally means that you can buy Alibaba right now cheaper than its IPO price, except with 15 times revenue, 4.5 times of free cash flow, and 3.5 times of its operating income. In all expects, Alibaba looks like a steal to me. But in case you think that $87 is still too high, well, you can consider using options to buy it even cheaper than the current market price. You can use BOSS Option Strategy to promise to buy at $85, and in return of you making this promise, you get to collect about $224 in passive income. That's a 2.6% in 15 days. On the other hand, if you already own a large amount of Alibaba shares, and you do not want to sell away at such a beaten down price right now, because you still believe in the company's future, you may consider using Option Strategy Y to protect your portfolio from its further downside. So if Baba does drop further from here, your options insurance will kick in, giving you an extra profit boost. There are different option strategies that you can use to suit your investment objective. But most importantly, as to get yourself educated first. If you want to learn how to use options to profit and even protect your portfolio in this volatile market, you can join us in our upcoming free to our next level options masterclass. Just click on the link around this video and register for your free spot. So what's your take on Baba? Is it a buy or a sell? Comment down below and let me know your thoughts. In the meantime, feel free to join my Telegram channel so that you can get more investment updates and insights. Feel free to also check out some of your videos right here to continue your learning. I will see you in the next video.