DiscoverGold
4 weeks ago
Bearish Trendline Threatening Alibaba Group Holding (BABA) Stock
By: Schaeffer's Investment Research | April 2, 2024
• Alibaba stock just brushed its historically bearish 100-day moving average
• The equity is already down substantially over the last 12 months
U.S.-listed shares of China-based e-tailer Alibaba Group Holding Ltd (NYSE:BABA) are 0.8% lower at $72.80 at last glance, following news that the company bought back shares worth $4.8 billion -- its second largest repurchase ever. BABA is underperforming in 2024, down 6.1% year to date, and a historically bearish signal is flashing that could keep headwinds blowing.
Specifically, Alibaba stock just pulled back within one standard deviation of its 100-day moving average after mostly trading above the trendline since August. According to a study from Schaeffer's Senior Quantitative Analyst Rocky White, eight other similar instances occurred in the last three years. After 75% of these occurrences, the equity suffered a drop one month later, averaging a 9.8% loss.
A similar move from its current perch would put BABA near the $65.70 level, surpassing its year-to-date lows and moving to its lowest mark since November 2022. What's more, it would extend the stock's already steep 26% year-over-year deficit.
Sentiment surrounding Alibaba stock is already quite bullish. Of the 15 covering analysts, 12 rate the shares a "strong buy." Plus, short interest dropped 7.4% in the last reporting period.
Now might be the perfect time to speculate on BABA's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 29% sits in the low 8th percentile of its annual range. In other words, options players are pricing in lower-than-usual volatility expectations at the moment.
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DiscoverGold
3 months ago
A Word and A Chart About and On Alibaba
By: Mish Schneider | January 29, 2024
Alibaba.com is one of the world's largest wholesale marketplaces.
To be honest, I had never gone to their website until today, even though we bought shares in BABA 2 weeks ago. So, in case you are like me and have not checked them out, they sell a lot of consumer items in bulk.
And they also sell pretty much everything. For instance, if you want a 1000w off-grid wind power Free Energy System for your home or business, you can get one and find an online description of the supplier, including their annual revenue. Plus, if you want them in bulk, you can order 1000 sets at a reduced price.
BABA has proven controversial a lot, most recently with a lawsuit settlement on monopolistic practices. However, the impact on their revenues is nominal and, in fact, could be a plus, as the company's stock price trades at just 8x net profits.
Anyway, China overall, has had no shortage of bad press. Yet, before we learned Jack Ma and others bought up to $200 million of BABA stock, the stock looked and still looks appealing to us. If one is looking to be a contrarian to all the bad press, then BABA is a company with solid fundamentals...
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DiscoverGold
5 months ago
Capital International Investors Has $148.76 Million Stock Position in Alibaba Group Holding Limited (BABA)
By: MarketBeat | November 25, 2023
• Capital International Investors increased its position in Alibaba Group Holding Limited (NYSE:BABA) by 174.0% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,784,713 shares of the specialty retailer's stock after purchasing an additional 1,133,419 shares during the quarter. Capital International Investors owned approximately 0.07% of Alibaba Group worth $148,758,000 as of its most recent SEC filing...
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DiscoverGold
5 months ago
Alibaba (BABA) share price decline post-results overdone, Goldman Sachs sees favorable risk/reward
By: Investing | November 24, 2023
Goldman Sachs maintained a Buy rating and $134 per share price target on Alibaba (NYSE:BABA) in a note to clients Friday.
Analysts told investors that they see upside ahead for the stock based on a favorable risk/reward.
"With [the] current market cap (US$209bn) implying 8.7X this year's earnings or 6.4X ex-cash compared with double-digit EPS growth potential ahead, we believe the share price decline post-results has been overdone and see favorable risk-reward given limited downside on our bull/base/bear valuation of US$191/$134/$74," the analysts wrote.
"We continue to view valuation as attractive as current market cap suggests a value for the underlying Taobao+Tmall business of c.6.5X NOPAT after adjusting for net cash on hand (over US$60bn end-2QFY24E), without valuing any of its ex-domestic eCommerce/cloud businesses, with double-digit EPS growth potential on the back of mid-single digit CMR growth, mid-single digit share count reduction yoy and further loss reductions at other businesses," they added.
Along with PDD and Kuaishou, Alibaba continues to be the investment bank's top Buy ideas in eCommerce.
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DiscoverGold
5 months ago
Since IPO in 2014, Alibaba $BABA has been green in December just twice, with an average return of -5.12%
By: TrendSpider | November 16, 2023
• Looking to buy the $BABA dip? Check this out first...
Since IPO in 2014, Alibaba has been green in December just twice, with an average return of -5.12%.
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DiscoverGold
5 months ago
Alibaba (BABA) reports Q2 revenue growth, announces dividend amid trading slump
By: Investing | November 16, 2023
NEW YORK - Alibaba (NYSE:BABA) Group Holding Limited (NYSE:BABA), a leading Chinese e-commerce giant, reported a 9% year-over-year increase in its second-quarter revenues today, reaching $30.8 billion. The figure was slightly below the anticipated $30.9 billion. Earnings for the quarter rose by 21% year-over-year to $2.14 per American Depositary Share (ADS), which was just above the expected $2.11.
Despite the positive earnings report, Alibaba's shares experienced a downturn in pre-market trading on Thursday. The company decided against proceeding with a full spin-off of its Cloud Intelligence unit, citing concerns over U.S.-imposed restrictions on semiconductors and computing chips that could negatively impact the unit's performance.
In a move to reward shareholders amidst market challenges, Alibaba's board has approved an annual cash dividend for the fiscal year 2023. Shareholders are set to receive $0.125 per ordinary share or $1.00 per ADS, with payments made in U.S. dollars.
Analysts remain optimistic about Alibaba's stock prospects, maintaining a Strong Buy consensus despite today's pre-market trading slump. This confidence is likely buoyed by Alibaba's solid quarterly performance and strategic decisions to navigate regulatory challenges while providing shareholder value through dividends.
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DiscoverGold
5 months ago
China's Alibaba to scrap cloud unit spinoff in response to US chip curbs
By: Investing | November 16, 2023
(Reuters) -China's Alibaba (NYSE:BABA) Group Holding said on Thursday it will scrap the spin off of its cloud unit in response to export curbs by the United States on chips used in artificial intelligence applications.
Its U.S.-listed shares fell about 5% in premarket trading after it also reported second-quarter revenue in line with market expectations.
"The recent expansion of U.S. restrictions on export of advanced computing chips has created uncertainties for the prospects of Cloud Intelligence Group," Alibaba said.
The e-commerce giant posted revenue of 224.79 billion yuan ($31.01 billion) in the quarter, compared with analysts' average estimate of 224.32 billion yuan, according to LSEG data.
China's economic recovery has been uneven. While the industrial and the retail sectors performed better than expected, the crisis-hit property sector still weighed on consumer confidence.Alibaba resorted to pressuring merchants to price aggressively during its Singles Day festival as it looks to take on competitors such as Douyin and PDD Holdings' Pinduoduo (NASDAQ:PDD) who have been selling lower-cost products year-round.
This is the first quarterly results for CEO Eddie Wu, one of Alibaba Group's co-founders and long-time lieutenant of former chief Jack Ma, who took over from former group chief executive Daniel Zhang in September.
($1 = 7.2481 Chinese yuan renminbi)
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UpTickMeA$AP
5 months ago
The numbers coming out of China, are extremely hard to take seriously, and believe. The last couple years have been extremely bad, yet it's always reported that things are good, and getting better... Which is simply not reality.
I've noticed with communism, the "truth" is what they say, and demand the people believe, not what actually is.... I guess they can force feed their "truth" to their people, but outside investors, aren't buying the BS. That's why money is fleeing at a massive pace.
DiscoverGold
7 months ago
Broad Peak Investment Holdings Ltd. Has $84.15 Million Stock Position in Alibaba Group Holding Limited (BABA)
By: MarketBeat | September 29, 2023
• Broad Peak Investment Holdings Ltd. grew its holdings in shares of Alibaba Group Holding Limited (NYSE:BABA) by 45.4% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 1,009,608 shares of the specialty retailer's stock after buying an additional 315,379 shares during the period. Alibaba Group accounts for 11.4% of Broad Peak Investment Holdings Ltd.'s portfolio, making the stock its 3rd biggest position. Broad Peak Investment Holdings Ltd.'s holdings in Alibaba Group were worth $84,151,000 as of its most recent SEC filing...
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