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Alibaba

Alibaba (BABA): Dissecting the FUD, Fundamentals, and TechnicalsAlibaba Group is a Chinese multinational tech company specializing in e-commerce, and IT. This Chinese company is listed on the New York Stock Exchange (NYSE) as BABA. In this analysis, I’ll be covering the company’s fundamentals by looking at its business model and financials, as well as technical analysis for the stock. I’ll also be providing my own insight on why this stock has been rather underperforming for the past few weeks, and what we can expect for the future. Business Model - Alibaba, while it initially started with a focus on e-commerce, has expanded to other territories as well - It aims to offer the necessary digital infrastructure as an e-commerce platform, providing small businesses the necessary tools and equipment to operate online. - Alibaba also takes part in cloud computing, just like AWS and Azure, offering data storage, big data analysis, and machine learning services. - Alibaba also has a business dedicated to digital media, producing original content - Alibaba owns 33% of Ant Financial’s shares, which is what affected the price action so heavily recently Ant Financial IPO FUD - Ant Financial is a company that was formerly known as Alipay. - Its expected market valuation after the dual listing was expected to reach over $310 billion, which would have significantly affected BABA’s price as well. - However, the Chinese Communist Party halted the Initial Public Offering (IPO) of this company, without an official explanation. - Ant Financial has transformed the way Chinese people interact with money. It challenged China’s banking system by brining easy use of payments, borrowing, and investing through smartphones across the entire country - Ant Financial’s business model, in essence, puts financial services outside the direct control of the CCP and Chinese banks Financials - So at this point, we understand why Alibaba’s stock prices have been negatively affected by news. - Looking at the company’s financials, we can discover that the firm’s fundamentals remain solid - The company has shown a parabolic growth in their revenue since 2010, reaching record highs for the 2020 Estimate - Accordingly, its operating income grows at a steady pace as well. - Its gross profit margin averages at 55.5%, which is considered as extremely high profit margins - They did report a decline in yoy EPS for the 12 months ending in September 30, 2020, and a 60% yoy decline in the EPS for the quarter ending at the same time. - Nevertheless, it has still managed to beat the consensus EPS, and continues to demonstrate yoy growth Technical Analysis - This is the weekly chart for Alibaba - We can see that it was consolidating in a rising wedge pattern, before breaking out in July 2020. - Due to the Ant Financial IPO cancellation FUD (fear, uncertainty, and doubt), stock prices fell from $320 down to $255. - Elliott Wave counts suggests a further potential downside to $220-230 levels, where it could complete the corrective wave at the gap support - We can also see that prices have never broke down the 150 Simple Moving Average (SMA) on the weekly. - This indicates that the converging point of the 150 SMA and the 0.618 Fibonacci retracement support at $200 could be considered our last line of support - Thanks to the recent corrective move, however, the Relative Strength Index (RSI) has been flushed out to neutral levels, from overbought territories - It seems as though the RSI could bounce on the trend line support soon Conclusion Alibaba is a solid company with strong fundamentals and financials, as well as a business model that expands throughout a wide range of areas. It has fallen victim to the restrictions imposed by the Chinese Communist Party recently, but it’s important to understand the role this company plays for the Chinese economy and the world economy. Companies like Alibaba are essentially too big to fall. There are attempts made by governments of various countries such as the US with big tech companies, and South Korea with Samsung Group, to regulate dominant firms. Regardless, none of them have actually succeeded besides a small correction in stock prices driven by FUD. As such, while technical analysis suggests further potential downside, I believe that investors should approach this stock from a buy perspective. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight.
NYSE:BABALong
by Michael_Wang_Official
10
BABA - BUY opportunity including Stop Loss and Take ProfitAnalysis of BABA (Alibaba Group). Current price is an opportunity to buy BABA. Alibaba group lays on a strong support level, and just might bounce back up. Even if my RSI Tunnels indicator is bearish, but it's in the deeps and there might be an opportunity here for a long. Stop Loss = 255 Take Profit = 300 Buy around current prices, 265-266 We can loss around 10$ (255 stop loss) per share but we can win 35$ (300 take profit) per share definitely positive risk reward ratio. Sounds like a good deal to me. Of course, if BABA breaks the 300 price barrier , you might want to consider holding it a bit more as it can reach it's 320 range. Soon i might publish more interesting ideas, Follow to get notified.
NYSE:BABALong
by dman103
2
BABA: 2 Day Chart Shows Where Bulls May Be HidingBABA 2 Day Analysis. I just caught a trend I wanted to point out. The bulls do have a very strong trend in play underneath at 253 acting as support. I pointed that out with the heavy blue lines and colored the top as support to show where it is in relation to current price action. The bull zone I posted earlier happens to be positioned in the top portion of that trendzone. This gives me even more confidence in that zone. Also, the CDV indicator below is still bullish. it usually correlates within +/-5% so it's rare to see it out pacing price action by 2x. It has began to flatten out but we haven't confirmed any bearish trend on the indicator. This may show bulls are on the sidelines waiting for their sign. Aside from my bull zone prediction, there is strong confluent support at 253. I would not short into this zone. None of this is a recommendation. All of your trades should be considered with your own personal analysis. NYSE:BABA
NYSE:BABALong
by jakelikesstocks
1
ALIBABA / BABA STILL GOING - LOVELY TRADE ENTRY !BABA trade entry with nice tight SL, still open and running BASED ON 1% RISK YOUR ACCOUNT WOULD BE RUNNING +4.28% OUR STRATEGY EXPLAINED: The entry price, SL and multiple TPs are shown on the chart. Our back testing and money management strategy itself is holding until a reverse signal to ride a big trend, but as you will not see the next signal - manage the trade as you wish should you decide to enter. What is our strategy? Our strategy is a trend following strategy, can be used on any instrument and time frame. However, we have hard coded specific parameters for when trading the H1 time frame, so we can back up over 4200 previous trades to confirm our edge from previous data. This gives us confidence in execution and belief in our trading strategy for the long term. The strategy simply sits in your trading view, so you will see exactly what we see - the trade, entry price, SL and multiple TPs (although we hold until opposite trade as this is the most profitable longer term plan), lot size, etc. This could be on your phone trading view app, or laptop of course. The hard work is done, so we have zero chart work time, no analysis, no time front of the chart doing technical analysis - technical analysis is very subjective - you may see different things at different times - how do you have a rigid trading plan on a H&S shoulder pattern? Your daily routine, diet, sleep, exercise can affect what you 'see' and your decision making, this doesn't happen when a strategy is coded like this; what we do have is a mechanical trading strategy... What does this mean? It means, we are very clear on our entry and our exit and use strict risk management (this is built in - put in your account size, set your risk in % or fixed amount and it will tell you what lot size to trade!) so we have no ego with our position and we are comfortable with all outcomes - its simply just another trade. This free's our mindset from worry and anxiety as we take confidence from knowing our edge is there and also that we have used sensible risk management. The strategy itself can be used as a live trading journal too - how cool is that? The strategy will confirm and support every open and closed position - so its quite easy to follow. We just have to do what Percy does. Please see our related ideas below for more information to explain what we do and how it can help you.
NYSE:BABALong
by RossTyler
1
baba means bull now this company never stops amazing me, there isn't a TA that has forecasted this stocks price that wasn't short since idk 2014 lol its p/e ratio is insanely good, its in straight bull mode for the benchmark 300 that might be a phycological brickwall but I think were on pace to blast past that, its literally went up 3 percent aftermarket already. its nearing the 1 trillion gross and should best that in 2021 or 22, and it has a very modest subscriber base of 880 million and growing compounded 3% a year. I could go on and on, but just so you know investing 1k in amazon in 94 would make u a millionaire today, baba is 20 years younger and doing the same thing with a larger audience base. im not missing out on my chance again so im all bullish in this stock HODL
NYSE:BABALong
by track4success