Buy when there’s blood in the street. That’s a good motto for the long-term investor, and one that’s absolutely terrifying in the short-term. I could spout out another dozen phrases which mean the same thing here, but the message is the same. So when I tell you that my Bull of the Day here is Chinese online giant Alibaba (BABA - Free Report) , just hear me out before you grab your torches and pitchforks.
In case you’ve been living under a rock, Alibaba provides online and mobile commerce businesses in the People's Republic of China and internationally. It operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party platform; Alibaba Health pharmaceutical e-commerce and consumer healthcare platforms; Alimama, a monetization platform; 1688.com, an online wholesale marketplace; Alibaba.com, an online wholesale marketplace; AliExpress, a retail marketplace; Lazada, an e-commerce platform; and Tmall Global, an import e-commerce platform.
Yes, there is a trade war going on which is sending the world economy careeing towards recession. Alibaba has a tendency to trade as a proxy for Chinese stocks as a whole. When the news surrounding the trade war is negative, Chinese stocks get hammered, and Alibaba sells off. That means there is a ton of risk surrounding this stock. But it also means there is a ton of opportunity.