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Alibaba Group Holding Ltd (BABA) Will Not Share Titanic’s Faith Anytime Soon

Alibaba Group Holding Ltd (NYSE:BABA)’s been criticized lately from all of its corporate aspects like organigram, yield, Alipay spin-off, just to name a few. Consequently, the company has been falling in price since its Initial Public Offering and a lot of people fear it will plummet, so they abandon the stock. CNBC’s Jim Cramer said that it won’t go much lower than $84. By the way, Tiger Global revealed a $500+ million stake in Alibaba Group Holding Ltd (NYSE:BABA) in an email sent to its investors. 1

From the latest shifts the valuation seems to be heading down indefinitely, but according to Cramer’s point of view, pricing Alibaba Group Holding Ltd (NYSE:BABA) in the low $80 will result in the fact that its peers will seem more expensive. There’s also the possibility that the current drop was caused by some investors, who had the luck of buying cheap shares, that saw a fast way of obtaining profit by selling when the stock was at its highs.

“I said $82 – $83. I think what happened is you had $92, if you got a lot of stock at $68 you had a really nice blended average right around where I want to buy it for people and I think that you got to let it come in, maybe it goes down to $84, but not much more,” said Jim Cramer.

Meanwhile, Yahoo! Inc. (NASDAQ:YHOO) has more problems than just falling prices. The company’s sole savior for the past few weeks was Alibaba Group Holding Ltd (NYSE:BABA), but it cannot help the Sunnyvale, California-based tech veteran anymore. Contrary to the popular belief formed, Cramer has his own opinion on the matter.

“I’m not into the idea of just savaging Yahoo! for this. Why do we have to think that Yahoo! is just a bunch of brain-dead individuals? They’ve got a lot of capital, they can do a lot of things,” uttered Jim Cramer.

There’s also the opportunity of Alibaba Group Holding Ltd (NYSE:BABA) finally buying Yahoo! Inc. (NASDAQ:YHOO) and putting an end to all the rumor and the speculation. The latter company has a relatively large consumer base, but cannot monetize its activities, whereas Alibaba Group Holding Ltd (NYSE:BABA) has a brilliant monetization strategy but has little access to potential customers outside China.

Disclosure: none
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