Jan 13, 2021 09:24 PM (GMT+8)
Mizuho Securities lowered Alibaba's target price from $300 to $270, pointing out that Alibaba's profit margin is at risk due to investment and competition. Alibaba is expected to face "destructive competition brought by the new community group buying business model" by pinduoduo and other companies, which should lead Alibaba to increase investment in the new business model and "expand its retail infrastructure in the low line market" to compete for market share. Analyst James Lee wrote that while these measures are necessary for Alibaba's long-term strategy, they will drag down profit margins.
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