Author argues BABA's value thesis is broken because a national-security blacklist will force institutional compliance selling regardless of valuation.
BABA — AVOID The author argues BABA's value thesis is broken because the stock has been flagged for 'Military Aid,' which is a blacklist rather than a regulatory fine or earnings miss. Institutional capital such as pension funds and endowments often have bylaws forbidding holdings flagged for national security risks, so compliance departments will force-sell regardless of how cheap the stock looks. When mandated sellers exit, the P/E ratio becomes irrelevant, so the author warns against catching a falling knife. No specific price target or timeframe is given.
Institutional capital (pension funds, endowments) often have bylaws that strictly forbid holding assets flagged for national security risks. Compliance departments will force sell, regardless of how "cheap" the stock is.
This Reddit post, published February 13, 2026, features u/itsarmansheikh discussing BABA. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/itsarmansheikh · Tickers: BABA