Should we buy Alibaba stocks?

I analyzed Alibaba stocks while considering buy it.

 

1) Overview

• Market Cap : 601.76B / 1st in China / 7th in the World
• Main Business : e-commerce ( Amazon made in China OR Rival of Amazon )
• Other business : cloud computing(AliCloud), finance(Ant Financial), entertainment(Alibaba Pictures,Ali Music)
• Price earning ratio(PER) : 26.1 / Reference : PER - stock price / EPS(Earning Per Share) , Amazon's PER : 90

2) stock price flow (American Market) / Reference : Alibaba was recently listed on the Hong Kong market

 

reference - Investing.com(http://investing.com)

 

 

3) Comparison with Amazon

When the beginning of an Alibaba,it called 'Amazon made by China' and it has been comparing with Amazon

becuase the two companies hava many overlapping parts of their business such as e-commerce and cloud computing. I compared the two companies in figures. ( Of course, both Alibaba and Amazon are growing companies that reinvest a large portion of their profits, so a simple comparison of numbers doesn't mean much)

• Market cap : Alibaba : 601.76B / 1.06T (1060B)
• Domestic market : China( 1.4 billon people, per capita GDP : $9.7k) / America ( 300million people, per capita GDP : $56k)
• Revenue(up to the third quarter) : Alibaba - 55B / Amazon - 230B
• Share in the Cloud Computing

 

reference - Synergy Research Group

 

4) author's idea

• China's domestic market will grow bigger(also per catita GDP)
• Even if the Chinese market opens up, (ex, Amazon or Google entered China) Chinese people are expected to still use Alibaba more
• Microsoft has been growing rapidly in the cloud computing market lately, and the reason why Microsoft is growing fast is because of its strength in the business-to-business market
• Alibaba cloud computing sector has a low market share at the moment, but there will be a strong point in the Chinese cloud computing market
• I don't think PER 26.1 is a high number
• it is strong point that the No.1 market cap in the Chinese stock market(Alibaba will be considered first if someone invests in the Chinese market)

* Number four is my personal opinion