Alibaba Stock: Buy, Sell, or Hold?

Alibaba Group has experienced a significant decline in stock value, dropping nearly 60% over the past five years. Despite this, co-founder Jack Ma supports the company's restructuring into six divisions, aimed at increasing agility and customer focus. The company continues to generate strong cash flows, with $22.4 billion in operating cash flow in the first nine months of the fiscal year, and has initiated a $25 billion share buyback program.

Alibaba is investing heavily in its core e-commerce and cloud computing sectors to stimulate growth. Challenges remain, including competition from PDD Holdings and restrictions on AI technology due to U.S. bans. However, with a forward P/E ratio of 9x and significant revenue growth, Alibaba's stock appears undervalued. While there are risks, the potential for substantial long-term gains makes Alibaba a compelling buy at its current valuation.