Alibaba's core business is 'root of the issue': Strategist
Alibaba (BABA) reported quarterly results that missed sales estimates, though the company's cloud computing segment outperformed. Macrolens managing principal and chief strategist Brian McCarthy joined Catalysts to provide his analysis of the e-commerce giant's performance. "The stock's on a bit of a roller coaster," McCarthy acknowledged, though he notes that markets seem pleased with Alibaba's international business segment during the quarter. "It's really the one pocket of strong growth within this company at this point," he told Yahoo Finance. However, McCarthy pointed to Alibaba's domestic e-commerce businesses as a key area of concern. He describes these legacy operations as "basically flat," calling that "the root of the issue for this stock." According to McCarthy, Alibaba's core business is struggling in "a highly competitive sector in a market that is beset with very, very serious macro headwinds." To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Angel Smith
