The Market Misperceptions Around Alibaba, Stitch Fix, And Twitter


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We revisit three The Razor’s Edge names from 2021. Alibaba is down in the dumps from regulatory scrutiny, Stitch Fix can’t get no respect, and Twitter received a negative sell-side initiation. We talk about each of the stocks, and while on the surface it would seem that nothing beyond stock performance and our interest unites the three, there are a lot of echoes in how the market is looking at each of them, at least from our vantage point.

Topics Covered

  • 3:30 minute mark – Why the recent regulatory reports around Ant Financial aren’t shocking
  • 10:00 – US corollaries for the current discussion
  • 14:00 – Last year’s warning
  • 18:00 – The significance of the FT report and how it might help Alipay’s/Alibaba’s position
  • 22:30 – The impact on Alibaba’s valuation itself
  • 26:30 – China regulators vs. U.S. regulators
  • 33:00 – Time horizon for clouds to dissipate

Stitch Fix

  • 38:00 – Why is Stitch Fix so bad? Reviewing the story, valuation, stock, etc.
  • 49:30 – The stylists’ news
  • 53:00 – The market context for SFIX’s stock


  • 55:30 – The Goldman downgrade and the confusion about Twitter from bulls
  • 1:02:00 – Reframing the creator tools
  • 1:08:00 – Blurring lenses in analyzing Twitter (or all of these names)
  • 1:12:30 – The luxury of not having the market’s trust