Hi,
The latest thread I could find on this stock is about two months old, and the share price has since fallen to around $29, so I’d be interested in hearing some updated opinions.
**Pros**
1. Margins of the core business is improving
2. Large net cash position (24bn in net cash positions, valuation of the stock is 40bn: ergo, business is valued at approx 15bn)
3. Core business appears healthy
4. Management is returning capital to shareholders
5. Food-delivery losses are narrowing (still huge though)
**Cons**
1. China-specific regulatory
2. Governance: the founder controls roughly 70% of the voting rights while owning only around 10% of the shares. I like the new CEO though. She worked two decades at PwC as an auditor in bejing, and has a double degree from PKU.
3. continued risk of a price war
4. unsure whether the net cash position is dumbed
This is my first post in this subreddit, I hope I stay within the rules of this community :)
EDIT: Thanks for the discussion. I invested today approx 0.5% of my networth. If it drops to 25 while the fundamentals stays intact, i will deploy another 0.5%. If fundamentals dont change, will do another 0.5% at 23. maximum exposure will be 1.5%. Let's see. Plan is to keep it for at least 1yr while reevaluating risk of geopolitical escalation