It is learned on December 22 from Phoenix Finance, in the Hong Kong stock market, Tencent’s stock price fluctuated above 300, JD.com’s stock price fluctuated above 200, Meituan’s and NetEase’s stock prices were all above 100, while Alibaba’s stock price was only HK$88 (as of 11:30 today).
In terms of market capitalization, Alibaba’s 1.87 trillion is second only to Tencent Holdings’ 3.09 trillion, and it is much higher than JD.com, Meituan, and NetEase.
The stock price of less than 100 yuan indicates that Alibaba may be undervalued.
In the second and third quarters of this year, Tencent Holdings achieved revenue of 274.1 billion yuan, while Alibaba achieved revenue of 412.7 billion yuan. The latter has a larger market size. However, after excluding various costs, Tencent Holdings’ net profit was as high as 585.7, while Alibaba’s net profit was only 2.226 billion.
Alibaba’s low net profit situation is not abnormal. In the second and third quarters of this year, it was mainly affected by “interest income and net investment income”, and the cost side occasionally increased by 37.08 billion costs.
In a horizontal comparison, Alibaba dominates in terms of revenue, while Tencent Holdings dominates in net profit. Both have their own strengths. Logically speaking, the market positions of Alibaba and Tencent are comparable, and there should not be such a large gap in stock prices.
Then, is it possible for Alibaba’s stock price to return to more than 100 yuan? The answer is that it is possible, and very likely.
Banks, real estate, and the Internet are the ballast stones for attracting high-quality employment in China and driving stable macroeconomic growth.
At the policy level, restrictive actions will be taken when the three industries expand blindly, but they will never “add insult to injury” when the three industries face operating difficulties. It is expected that in 2023, more policies will be introduced at the policy level to support the development of Internet companies, just like the current support for the real estate industry. At that time, the share price of Tencent Holdings will be higher than it is now, and it will not be difficult for Alibaba to achieve a share price of more than 100 yuan.