Alibaba's Thesis Is Close To Breaking

Summary

Chinese tech stocks have gotten crushed, and BABA is down 54% from its highs due to steady deteriorating in its fundamentals and regulatory outlook.

China's government is potentially preparing to ban all future foreign tech IPOs, cutting off $46 trillion in growth capital through 2030, $5.8 trillion per year.

China's new policy towards tech innovation appears focused on top-down government-sponsored investment at the expense of tech entrepreneurs.

All Chinese Tech stocks are now extremely speculative, 1% or less max risk cap recommendations, and Fallen Angel "holds" regardless of valuation.

Alibaba's fundamentals have deteriorated at a rapid pace. Its growth outlook has been cut in half, and its speculative hyper-growth thesis is now broken.

This idea was discussed in more depth with members of my private investing community, The Dividend Kings