Key Financial Insights on Alibaba Group
Alibaba Group (NYSE: BABA) has a P/E ratio of 17, lower than Amazon’s 35 and MercadoLibre’s 61. In Q1 of fiscal 2026, Alibaba reported nearly $35 billion in revenue, a 2% year-over-year increase, while its net income rose 76% to $5.9 billion. Despite these attractive numbers, political risks associated with investing in China have deterred some investors, including Berkshire Hathaway, which has historically avoided Chinese tech stocks.
Charlie Munger, Buffett’s late business partner, previously invested in Alibaba but later described it as “highly competitive” and risky, particularly after concerns about regulatory responses to co-founder Jack Ma. The company has only seen a 40% increase in share price since its U.S. debut 11 years ago, reflecting investor caution amidst geopolitical tensions.
