Is Alibaba stock a buy?Key Statistics
P/E Ratio 9.7
P/FCF Ratio 23
ROIC 7.5%
Operating Margin 11.78%
Analyst Estimates
March 2024 = $8.76 EPS (+12.35% YoY)
March 2025 = $9.85 EPS (+12.39% YoY)
March 2026 = $10.31 EPS (+4.68% YoY)
BABA trade ideas
levels to trade BABA earningfor personal use
Alibaba (NYSE: BABA) is owned by 1.80% institutional shareholders, 0.00% Alibaba insiders, and 98.20% retail investors. Goldman Sachs Group Inc is the largest individual Alibaba shareholder, owning 21.58M shares representing 0.10% of the company. Goldman Sachs Group Inc's Alibaba shares are currently valued at $1.80B.
BABA signaling long term entry pointViewers, since BABAs IPO, some may have missed out on the nice upward move. I got in and got out early myself. Now tho putting a long term investment view I see some good entry points based on oscillators and stochastic data from weekly chart data. In combination with simple yearly wave cycles, i see BABA is positioned in an attractive longterm buyers entry point. We've probably seen a completion in correction and entering the next Leap for a 3rd wave. There may some accumulation interest going on, early indication of buyer interest.
Trade smart. Cheers.
BABA Interesting spot hereBABA daily and hourly charts
Got my eye on this 79.5-80 support zone. In March we had a decent bounce up to 105 area off of this level. Today we tapped that 80 zone again for a small bounce. I'd like a retest of this area to open up a swing position long with a tight stop under 79. Looking for a remount and close over the daily 9EMA at 83.61 to confirm some buyers back in the stock. Otherwise, this 79.5 could be a nice flat bottom break level to take it down further.
Alibaba longAlibaba looks bullish as we expect the chart to form a double bottom pattern. We expect it to rebound from the strong resistance levels.
There is also a bullish cross-over on the MACD line.
Risk-reward ratio is 10.64.
Entree price at 81.74
Taking profit at 120.06
Stop loss at 78.05
$BABA - Looking goodIf the stock can close above $83 consecutive days, it could see $90.00 near term target. The IHS shoulder has not been broken yet. Fingers crossed for the bulls. 👀
Baba ..Rebound Looking for a bullish reversal after the correction that closed 82 gap.
Should push up to close 87 gap right away, then I expect a pullback or cool off before the last leg to 90
You can see the double bottom on the RSI
I like to keep track of the Hangseng when I trade Chinese stocks.. here's the 4 hour chart of the Hang seng
BABA AnalysisPrice playing out nicely as analyzed previously. I'm expecting price to mitigate the bullish POI at 78.85 soon before we wait for confirmation for price to make a bullish retracement.
BABA Chinese government reshuffle spooks investorsSHORT
The Alibaba (BABA) share price has struggled so far in 2022, falling by 44.7% year-to-date (YTD).
Chinese e-commerce and technology sectors are facing fresh challenges: The Nasdaq Golden Dragon index, which tracks US-listed shares in Chinese companies, shed a record 14% following announcements that Xi Jinping has extended his rule to a third term as president – and filled senior government roles with party loyalists. In the 24 hours following the announcement, Alibaba fell 18%.
The Hang Seng Index also fared dismally, dropping 1,030 points to a 13-year low, following investor concern that the new government would stifle the economy and private enterprise. With China’s zero-Covid policy now cemented in the near term, along with government support for Vladimir Putin, a bearish sentiment might continue for tech stocks as investors stick to a risk-off mode.
The strict zero-Covid controls implemented by the Chinese government have resulted in lockdowns which have disturbed supply chains and the manufacturing industry.
In an article for CNBC, Antonella Teodoro, senior consultant at MDS Transmodal, said: “China’s zero-Covid approach is impacting production and manufacturers are seeking alternatives to the current ‘factory of the world’.
“Drilling down to the individual commodity groups exported from China, we observe that China has been continuing to lose market share, with Vietnam amongst the countries gaining importance on the international landscape.”
In March, the BABA share price fell below $100 for the first time since 2017. It has since been unable to hold above that level. But the stock had gained value since late May after the company announced its first-quarter earnings report.
The June-quarter earnings report was more positive: Daniel Zhang, chairman and CEO of Alibaba Group, said: “Following a relatively slow April and May, we saw signs of recovery across our businesses in June. We are confident in our growth opportunities in the long term given our high-quality consumer base and the resilience of our diversified business model catering to different demands of our customers.”
Toby Xu, chief financial officer of Alibaba Group, also commented: “Despite the challenges posed by the COVID-19 resurgence, we delivered stable revenue performance year-over-year. We have narrowed losses in key strategic businesses given ongoing improvements in operating efficiency and increasing focus on cost optimisation .
“We recently shared our plan to add Hong Kong as another primary listing venue. By becoming primary listed on both Hong Kong and New York stock exchanges, we aim to further expand and diversify our investor base.”
Is the current share price at a good entry point for investors looking to make an Alibaba stock investment? Has the share price bottomed out or is there potential for it to retreat again?
Historical stock price data shows that BABA dropped by 49% in 2021, ending the year at $118.79 a share, as worries about the Chinese market and a sell-off in technology stocks in the US exerted further downward pressure.
In April last year, the Chinese government fined the company $2.8bn for what the State Administration for Market Regulation said was monopolistic behaviour
The record fine was lower than the market had anticipated and removed some of the uncertainty surrounding the potential penalty that would be imposed. However, a gain in the share price was short-lived and it continued the downward trend that started in October 2020, after hitting its all-time highest stock price of $309.92.
Alibaba announced its December quarter 2021 results on the same day that Russian tanks rolled into Ukraine (24 February 2022), leading to much market upheaval, particularly in the technology sector.
What may also have concerned investors was that its revenue figures represented its slowest quarterly growth rate since going public in 2014. Revenues totalled RMB242.58bn ($38.07bn) in the October-December period, an increase of 10% year-over-year (YoY).
SHORT $BABADeveloped a nice little zone here,
Waiting for price to break below this zone...
Looking for an entry around $91.52 for puts
ALIBABA undergoes organizational revamp: A fundamental analysis.Alibaba, one of the world's leading e-commerce and cloud computing companies, has a rich corporate history that is sure to capture the attention of many. Founded by the charismatic and unconventional Chinese entrepreneur Jack Ma, the company was able to attract investments from the likes of Yahoo and SoftBank during its early days. However, it wasn't until its initial public offering (IPO) in 2014 - which raised a staggering HKEX:22 billion - that Alibaba truly entered the public consciousness in a significant way.
Recently, Alibaba surprised investors by announcing that it is undergoing an organizational revamp. In this article, we will delve into the implications of this development and assess whether investing in the company's stock is a wise decision.
Over the past decade, Alibaba has diversified its offerings beyond e-commerce. However, the company has been struggling to generate substantial growth for the past few years, a trend that is reflected in its stock price. In fact, since its IPO, the stock has decreased by 5%.
The current situation with Alibaba indicates that all the shareholder value the company once created has been erased, even if the degree of the sell-off may be exaggerated. While it's important to acknowledge that Alibaba is a Chinese company and likely experienced the impact of COVID-19 lockdowns, the fact remains that it has been struggling even as pandemic fears diminish. Consequently, the company's management is at a critical turning point.
In response to this situation, Alibaba has recently announced a significant restructuring plan that involves dividing the company into six distinct entities, each focused on one of its core divisions. According to CNBC's coverage of the story, these divisions will include cloud computing, e-commerce (Taobao Tmall), digital media, digital commerce, Cainiao logistics, and local services. Each entity will have its own Board of Directors and CEO.
The reasons behind Alibaba's decision to pursue this course of action are still subject to speculation. While some suggest that the restructuring is a response to the company's declining growth, others posit that it could be an attempt to address Alibaba's perceived monopoly status, given its size and the scrutiny it receives from the Chinese government.
After the announcement of the restructuring plan, research analyst Scott Kessler suggested that the Chinese government may have played a role in endorsing the move. The underlying rationale for this organizational overhaul is to allow each division to operate independently, almost like its own company.
This implies that the six new CEOs will have unique perspectives, enabling their respective entities to make swift decisions and compete more effectively with other cloud and internet companies. Essentially, the different segments will have the autonomy to create dedicated budgets, identify crucial initiatives, and raise funds from their own investor groups. The ultimate aim may be to spin off Alibaba and list each entity on a public exchange separately.
Investors will need to exercise patience to determine if Alibaba's restructuring plan is successful. Existing shareholders should hold on to their shares and evaluate future earnings reports, enabling them to determine if exchanging their shares in the different entities is a viable option when the time comes.
On the other hand, prospective investors may want to wait and observe future earnings reports to evaluate each division's potential. This will help investors to identify which entities are of interest to them. It may be prudent to invest in Alibaba before any potential spinoffs and separate listings, but only after careful consideration of the spinoff entities that make it onto their investment radar.
In conclusion, Alibaba's recent restructuring plan is a significant development that highlights the company's efforts to address its challenges and reposition itself for growth. While the possibility of a spinoff and separate listings of each entity is exciting, investors must exercise caution and carefully evaluate each division's potential before making any investment decisions.
Alibaba is in a decision zoneI believe BABA is in a gray zone where the market decides if it’s time to push it higher or if it will slide to the level of the end of 2022.
Below are the things I will consider.
1. Short conformations:
- Symmetrical triangle pattern (green lines)
- Declining RSI
- The money flow index keeps declining
- Possible H&S neck breakdown (blue lines)
Target - 60
2. Long confirmations:
- Price chart breaks upper trend line (and closing the end of march gap)
- SMI is going up, and MACD turns positive
- Quarterly revenue way over expectation (May 18th)
Target 1 – 100-105, Target 2 - 125
What are your thoughts?
NOTE: This is not financial advice. Every trader/investor should do their research and follow a personal plan.
BABA, 4d/-10.56%falling cycle -10.56% and reamin 4 days.
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This data is analyzed by robots. Analyze historical trends based on The Adam Theory of Markets (20 moving averages/60 moving averages/120 moving averages/240 moving averages) and estimate the trend in the next 10 days. The white line is the robot's expected price, and the upper and lower horizontal line stop loss and stop profit prices have no financial basis. The results are for reference only.
#BABA #ALIBABA LONGALIBABA is nearing support and should be ready for some big upside in the coming weeks/months. Analyst price targets are downside HKEX:72 upside median HKEX:150 and long HKEX:220 , considering the market is a bit shaky and volatile i would be more conscious to the downside and put an even lower downside target of about 45/50 range. however, the recent news coming out of BABA on splitting the business is a very solid news for the stock and is definitely the one to hold on to for big gains.
Alibaba (BABA) is undervalued right now.Although Alibaba experienced a downturn in its financials in 2022, it still meets the requirements of a great business.
PS: "Intrinsic Value by zdmre" has not been published yet!
#DYOR
BABA: Buy ideaOn BABA as you see on the chart we have a buy idea because we have the breakout of vwap.Thanks!
Trading Alibaba: Spotlight on stocks
With so much political turmoil in the world, it’s hard to forecast the markets right now, especially for Chinese-related assets. Let’s explore Alibaba (BABA) and see if the company is recession-proof or a potential short.
Who is Alibaba?
Alibaba Group Holding Limited is a Chinese multinational technology company specializing in e-commerce, retail, and technology. Founded in 1999 by Jack Ma, Alibaba has since become one of the largest e-commerce companies in the world, ranked 37th against the biggest giants of all industries worldwide.
The company started as a business-to-business (B2B) marketplace connecting Chinese manufacturers with buyers worldwide. Over time, Alibaba expanded its offerings to include business-to-consumer (B2C), and consumer-to-consumer (C2C), along with e-commerce platforms, online payment services, and cloud computing services.
Alibaba went public in 2014 with an initial public offering (IPO) priced at $68 on the New York Stock Exchange (NYSE). Alibaba’s IPO boosted the value of the company to a staggering $167.6 billion, the largest IPO of the time raising HKEX:25 billion.
Since then, Alibaba's market capitalization has grown significantly. As of April 2023, the company's market cap is around HKEX:574 billion.
Revenue reports
Alibaba's revenue has continued to grow in recent years. In the fiscal year 2022, the company reported total revenue of CNY 853.1 billion (approximately $134.6 billion USD), an increase of 19% from the previous year. The largest share of Alibaba's revenue, 67%, comes from its domestic e-commerce retail segment, and online marketplaces such as AliExpress.
A very optimistic picture from the revenue reports showing YoY growth of 19%. A very sunny outlook, but let’s keep digging.
Expansion into foreign markets
Besides its success in China, Alibaba has expanded beyond its geographic borders. The company launched its international marketplace AliExpress with tremendous success, finally allowing international buyers direct and easy access to Chinese products and sellers.
As of 2023, 200 million shoppers visit AliExpress every month from 230 countries. And with 100 million products available, it’s no wonder that AliExpress handles 60,000 packages per day.
Alibaba in the news
Alibaba's stocks experienced a decline from HKEX:120 to just $68 per share in a matter of 3 months. This was said to be an effect caused by Japan's SoftBank plans to sell almost all remaining shares of Alibaba. But then, for no obvious reason, the price rebounded to HKEX:104 in less than 10 days.
The situation is intriguing, as one would expect a big shareholder selling a stake, even if it was not entirely unforeseen, to exert downward pressure on the shares. SoftBank has experienced some difficulties lately, and it has been cutting many holdings, which suggests that the dumping of BABA shares is more reflective of SoftBank's performance rather than Alibaba's.
SoftBank has struggled with some of its Vision Funds, which have amassed billions of dollars, but have not provided the returns that investors had expected. This occurrence could indicate a broader referendum on SoftBank, or SoftBank may need to liquidate some more of its positions for operational purposes.
SoftBank isn’t necessarily perceiving BABA as a poor investment, it simply needs a lot of cash. The timing of this move coincides with Alibaba’s announcement to divide operations into 6 unique entities… no doubt another factor that kept BABA on the shortlist for dumping.
Political pressures
Whether World War III is coming, or just a lot of posturing and sanctions, nobody knows for sure, but China is definitely sending strong invasion signals to Taiwan. If yet another big bully victimizes a small nation again, sanctions will fly. Being an international e-commerce business based in a country that is blacklisted is a risky situation.
And if a cold war starts to heat up, pretty much all Chinese e-commerce businesses could crumble under international political pressure. Not to mention, many of those products find their way to American shores where consumer spending is on a sharp decline.
Conclusion
In conclusion, Alibaba has had a significant impact on the e-commerce industry, but it is still 4 times smaller in revenue than Amazon. Growth in recent years was more than double that of Amazon, both in China and internationally, but the landscape is changing, and it seems unlikely that BABA will fare well in the coming months. The same can be said for many stocks from multiple countries.
A downturn is due, and when the economic correction is over, only the biggest and strongest will survive. But we’re not talking about survival. We just need to know if the stocks rise or fall.
A rise is hard to imagine, but if blockages and naval battles kick-off, Chinese supply and demand chains will break, and without that, an e-commerce business is just a warehouse with high costs. Watch the news daily, when you see ships, it might be time to short.
$BABA - hold $36 or else The gap from NYSE:BABA company split news is closed and then some. Currently at lower Bollinger Bands. If $86.00 fails, things are not looking good for the bulls as $80.00 - HKEX:77 area could become a reality and could be a good area to load or DCA. Vicious sell off in Chinese stocks since last week.
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Trade is done when it hit one of the target or stop loss is hit.
Disclaimer: Trading note. Not an investment advice.
BABA: Sell ideaOn BABA as you see on the chart we have a sell idea after the breakout of vwap.Thanks!
Baba I shorted baba yeateday at 94.40 and rode it down to 90.50. I closed. My thesis here is prior to pumo to 105$ we had a tripple wick to 88.17/88.25
This is a huge potential support if we can flip this here. Seems logical to go long at this level I am in calls 91$ calls out for may.
I think as long as we hold 88$ as support this idea is valid. A breakdown of 88$ will lead us towards 85.50 again which was the breakout level.
I am long BABa today at 88.25 as I had been waiting for this level for a bit
BABA ( watch list ) after 900 days of decreasing price i think BABA finally is trying to create support zone for buyers. for me 150$ dollar is so important if BABA could toch this price without strong rejection we can think about starting a new rally. but for now if i wanted to buy this stock i would buy it in this prices.
BABA AnalysisPrice playing out nicely as analyzed at the start of this month. Price is currently filling the fair value gap at 92.06. With the strong bearish impulse, price could potentially continue lower into the bullish POI at 78.85. I expect price to make some bullish retracement before continuing lower.
