The algorithm-based WalletInvestor was bearish in its long-term BABA stock forecast, predicting that the price could drop to $85.22 per share by the end of 2022 and $36.19 by the end of 2023. Conversely, Coin Price Forecast was highly bullish in its long-term outlook for the stock.
Is Baba stock still a buy at $160?
BABA has fallen more than 50% from all-time highs reached late last year, and is now trading just under $160 per share: At recent prices, BABA is now trading at essentially the same price that it did more than four years ago.
Should you invest in Baba and Chinese stocks?
Investing in BABA and Chinese stocks is risky. As Fraser Howie, an independent analyst said, “Everybody’s in the cross-hairs.” Also, while BABA stock looks attractive from a valuation perspective, it is not easy to price the risk given the uncertainty.
Why did the Baba share price fall in January 2022?
In addition to worries about the Chinese market, a sell-off in technology stocks in the US NASDAQ Index exerted further downward pressure in January 2022. With the NASDAQ bottoming out on 27 January, the BABA share price fell to the $110 per share level for the first time in almost five years.
Is Alibaba (Baba) stock a cheap alternative to Amazon?
Non-GAAP earnings per share of RMB 11.20 ($1.75) was on $2.329 billion in income from operations. This values BABA shares at a price-to-earnings ratio in the teens. Before the regulatory crackdown and endless penalties, investors could call Alibaba a cheap alternative to Amazon (NASDAQ: AMZN ).
What is the future of Alibaba stock price?
For its current fiscal year 2022, Alibaba is expected to earn $7.42 a share, down 25% compared to 2021. But growth is expected to pick up in 2023, up 6% to $7.88. Click here to the top-rated stocks in the group.
Will Baba stock recover?
Though BABA had slightly recovered by 32.4% from its 52 weeks low of $73.28, we will still rate the stock as a good buy given the risk/return ratio, assuming a favorable result post-Chinese government symposium with the Big Tech firms.
Is Alibaba undervalued now?
However, we believe that Alibaba's stock is considerably undervalued. At its current market price of about $95 per share, Alibaba trades at just about 12x 2022 earnings (fiscal year ended March).
Is it a good time to buy Alibaba stock?
Super bullish, the consensus among Wall Street analysts is that Alibaba should still see significant growth in 2022. Are they right? More than 65% below their all-time high in October 2020, Alibaba (BABA) - Get Alibaba Group Holding Ltd.
Is Alibaba bigger than Amazon?
Alibaba is smaller than Amazon, but it's only growing a slightly faster rate. Alibaba's revenue rose 41% in fiscal 2021 (which ended in March), or just 32% after excluding its takeover of the hypermarket operator Sun Art. Alibaba expects its revenue to rise 20% to 23% in fiscal 2022.
Is Baba a buy Zacks?
The Zacks database contains over 10,000 stocks. All of those stocks are classified into three groups: Sector, M Industry and X Industry....Momentum Scorecard. More Info.Zacks RankDefinitionAnnualized Return1Strong Buy25.08%2Buy18.56%3Hold10.15%4Sell5.79%2 more rows
Is Alibaba oversold?
Alibaba Is Oversold; Target $120 Per ADR.
Will Alibaba be delisted?
According to the HFCAA, there will be "an initial trading prohibition on a registrant as soon as practicable after it is conclusively identified as a Commission-Identified Issuer for three consecutive years." Alibaba's shares fell by -8% from $100.93 as of March 9, 2022 to $92.92 as of March 10, 2022.
Why is Baba stock dropping?
Beginning in March, the lockdowns hit Shanghai, China's financial center, and have caused investors to worry that they'll hurt China's economic growth -- and thus hurt large tech companies like Alibaba. With today's drop, Alibaba's stock price has plummeted 26% over the past month.
SoftBank denies BABA share disposal
In recent Alibaba stock news on 4 February, Alibaba filed a statement with the US Securities and Exchange Commission ( SEC) registering one billion additional American Depositary Shares (ADSs). American Depositary Shares ( ADRs) are shares in non-US companies that are available for trading on a US stock exchange and denominated in US dollars.
Alibaba stock forecast for 2022: Can the BABA price get back on the growth track?
At the time of writing, on 17 February, the average price target among 28 analysts that have issued an Alibaba stock forecast for the next 12 months was $212.88 per share, according to data compiled by MarketBeat .
Q2 Earnings Erosion Hurt BABA Stock
In the second quarter, Alibaba posted revenue growing by 29% to RMB 200.69 billion ($31.15 billion). Non-GAAP earnings per share of RMB 11.20 ($1.75) was on $2.329 billion in income from operations. This values BABA shares at a price-to-earnings ratio in the teens.
Opportunity in High National GMV
Alibaba must avoid further restrictions from the CCP. It is embracing connectivity and openness for its consumer sides, including Taobao. Customers benefit from a positive experience that also gives competitors a fair chance. This non-monopolistic behavior might satisfy the Chinese government.
Beijing Bureaucrats Pose Risks
CCP bureaucrats pose an ongoing, major risk that Alibaba shareholders cannot anticipate. Markets may react negatively to new regulations that protect Chinese citizens but hurt Alibaba’s competitive position in the e-commerce market. The stock may stop dipping to new 52-week lows in the absence of such news.
BABA Stock Has Bullish Analysts
Wall Street analysts have a bullish average price target of $262.25 on BABA stock, in a range of $192-$407 a share, according to Stock Rover. The stock also has strong quant scores on all three key metrics of value (81), growth (91) and quality (95).
Your Takeaway
Alibaba shares will stop falling when the CCP hints that it will introduce no new reforms to the e-commerce market. This could take a while. The party markets its Common Prosperity initiative as protecting its people. It will destabilize the power companies have on the market. This will hurt Alibaba’s profit margins.
Why is China targeting tech companies?
It has always been difficult to read the Chinese government's actions. Meanwhile, there are several reasons behind the country’s crackdown on private-sector tech companies. There's rising wealth inequality in the country and the perceived risk from the strengthening private sector.
BABA stock prediction
Analysts have a bullish forecast and BABA’s median target price implies an upside of 49 percent over the next 12 months. These target prices were issued before the current crackdown on Chinese tech stocks. China’s high-handedness has changed the valuation framework and outlook for Chinese stocks including BABA.
BABA stock forecast 2025
The long-term outlook for BABA stock looks positive because both e-commerce and cloud are fast-growing industries. BABA has a lead in the Chinese e-commerce markets even though foreign e-commerce giants like Amazon have struggled in the country.
Is Alibaba stock a good long-term investment?
If we ignore China’s crackdown, Alibaba looks like a tempting buy at these prices. However, the geopolitical risk associated with investing in Chinese stocks has risen considerably since we never know “who’s next.”
Investing in BABA and Chinese stocks is risky
As Fraser Howie, an independent analyst said, “Everybody’s in the cross-hairs.” Also, while BABA stock looks attractive from a valuation perspective, it is not easy to price the risk given the uncertainty. Goldman Sachs’ probably made a golden statement in a note to clients. “Even when you think China risk is priced…it can get worse.”
BABA Stock Price
BABA has fallen more than 50% from all-time highs reached late last year, and is now trading just under $160 per share:
Why Did Alibaba Stock Drop?
There are many potential reasons why BABA has fallen. Certainly, it is not because the company generated 34% year over year (‘YOY’) revenue growth in the latest quarter, and it also isn’t because the company grew non-GAAP net income by 10% as well.
Alibaba Stock Forecast
Wall Street remains bullish as ever, with a 4.69 rating that leans “very bullish.”
Is BABA Stock A Buy, Sell, or Hold?
What are my thoughts? If this was just a fundamental story, then the decision would be an instant call to the affirmative. BABA is projected to increase earnings at a rapid rate over the next five years and is now trading at less than 8x estimates for fiscal 2026 earnings.
Start Your 2-Week Free Trial Now!
I run Best Of Breed, a research service uncovering high conviction ideas in the winners of tomorrow. I am ranked in the top 1% for financial performance on Tipranks.
The Chinese tech giant still has a viable path toward joining the 12-zero club
Leo is a tech and consumer goods specialist who has covered the crossroads of Wall Street and Silicon Valley since 2012. His wheelhouse includes cloud, IoT, analytics, telecom, and gaming related businesses. Follow him on Twitter for more updates!
Key Points
Alibaba seemed destined to become China’s first $1 trillion tech company, but it lost 40% of its value over the past 12 months.
What happened to Alibaba?
Alibaba's precipitous decline started last December when China's State Administration for Market Regulation launched an antitrust probe into its e-commerce business.
The bottom line
It's tough to recommend buying any Chinese tech stocks right now, but Alibaba isn't down for the count yet. Investors who are willing to look past all its near-term challenges could potentially own a piece of a $1 trillion company by 2025, but it could be a very bumpy ride.
