Alibaba Stock Price Climbs After This Shareholder Letter Delivery (NYSE: BABA)

The Alibaba stock price has climbed 15.3% in October and is up another 2.9% today (Thursday) after the company released a letter to shareholders reassuring them of the company's growth prospects.

AlibabaAlibaba stock investors are worried about slowing revenue growth from the Chinese e-commerce firm, plus trouble with China's economy. Alibaba Group Holding Ltd. (NYSE: BABA) stock is down roughly 45% since it soared out of the gate following its IPO. BABA shares hit a high of $120 a share in November 2014 and now trade near $68.

Today, Alibaba Chairman Jack Ma's letter addressed those bearish concerns.

"Recently, signals of China's economic slowdown have triggered widespread concern and, I believe, overreaction around the world," Ma wrote. "I do not agree with the notion that consumption will decline as economic growth slows. It is inaccurate to think that the slowdown of the Chinese economy means that Chinese people are unwilling to spend."

China's stock market crash in August also presumably dealt a black eye to Alibaba stock. Between July and August, the Shanghai Stock Exchange fell more than 43%. That sent shockwaves through all Chinese stocks as U.S. investors panicked. Major Chinese stocks like Baidu Inc. (Nasdaq: BIDU) and JD.com Inc. (Nasdaq: JD) have fallen 33% and 28% since June.

Ma also pointed out how Alibaba isn't a one-trick pony. While it is the biggest e-commerce company in China, it's focused on more than just e-commerce.

"Our key priorities for the next decade will be globalization, development of the rural economy and big data," Ma said. "At this historic time, Alibaba Group must embrace change, invest in change and drive change."

That statement reiterates what Money Morning Executive Editor Bill Patalon has been telling readers since before the Alibaba IPO.

Alibaba is a becoming a global force. And that's one of the reasons we're still so bullish on the Alibaba stock price...

Why We're Bullish on the Alibaba Stock Price Now

As Patalon has pointed out, the dip we've seen from the Alibaba stock price in 2015 is common for new stocks.

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"I knew that, as a hot IPO, there was every chance the stock could - and probably would - sell off," Patalon said. "It's a 'transformational' type of company, meaning its leaders are 'planting seeds' right now that will have big future payoffs."

Patalon says you can't look at Alibaba as a short-term investment. This is the kind of stock you buy and hold for a long period of time. The company has its sights set on the long term.

"Alibaba's moves into entertainment, media, cloud computing - these are all part of a broad vision Jack Ma and his executive team has for Alibaba," Patalon said.

Because of this global growth strategy, Patalon refers to BABA stock as a "legacy wealth" play. That means it's the type of stock to buy and hold for not just years, but decades. By doing so, you have the chance to bank profits for the foreseeable future.

The Bottom Line: The Alibaba stock price is climbing today after Chairman Jack Ma released a letter to shareholders reassuring them about investing in the company. While investors have panicked about Alibaba stock, we have pleaded patience throughout 2015. This is not a short-term stock. You want to buy and hold BABA shares for years to come.

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Profit Alert: Since Money Morning Executive Editor Bill Patalon launched his Private Briefing program just a few short years ago, he's recommended 192 stocks that have either doubled or tripled in value. The service has completely revolutionized the way people invest. Keep reading to find out more about his extensive research and premium stock picks...