BABA: Stock Outpaces Market on Valuation Strength — But a $433M Cloud Still Looms

Court: S.D. New York

Case: 1:20-cv-09568

Alibaba BABA closed Monday at $108.22, gaining +1.41% and outpacing the S&P 500’s modest +0.14% rise. But while the stock is flashing short-term strength, the broader setup remains nuanced.

The stock lags the market over the past month, down 5.45% versus a 3.97% S&P 500 gain. Yet fundamentals show resilience:

📊 Q2 EPS expected at $2.26

📈 Revenue forecast: $34.32B, up +2.5% YoY

📉 Forward P/E of 11.1x, well below the industry’s 21.7x

📉 PEG ratio of 0.45, suggesting undervaluation vs. peer average of 1.38

Zacks ranks BABA a #3 (Hold) but notes that EPS estimate revisions have dipped 3.34% over the last 30 days. With the upcoming earnings release approaching, all eyes are on whether buyback momentum and AI expansion will beat expectations.

Amid market chatter, many investors may overlook the fact that Alibaba is still working through a $433.5 million class-action settlement over its handling of Ant Group’s blocked IPO and subsequent regulatory scrutiny.

• Nov 2020: Ant’s IPO suspended; BABA drops 8%.
• Dec 2020: Antitrust probe sparks 13% single-day drop.
• Apr 2022: Investors file lawsuit over nondisclosure.

• Eligibility: Held BABA between 2019-2020
• Late claims still being accepted, pending court approval
• Payouts usually arrive 8–12 months after final ruling

👉 You can check more information about it and file for a payout HERE.

As earnings approach and valuation looks appealing, BABA bulls may find opportunity — but regulatory ghosts haven’t faded yet.