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what to do with baba stock

by Carroll Howell Published 3 years ago Updated 2 years ago
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Is Baba stock too cheap for value investors?

May 02, 2022 · Real-time trade and investing ideas on Alibaba Group Holding Ltd - ADR BABA from the largest community of traders and investors. Rooms Shows Rankings Earnings Newsletters Shop. Cancel. Log In. Sign Up. DOW 0.00%. S&P 500 0.00%. NASDAQ 0.00%. Trending now. Alibaba Group Holding Ltd - ADR 101.21 4.12 (4.24%)

Is it time to get rid of Baba stock?

Dec 04, 2021 · Publish date: Dec 3, 2021 4:24 PM EST. Ever since a disappointing earnings report, shares of the Chinese e-commerce giant Alibaba ( ( BABA) - Get Alibaba Group Holding Ltd. Report) have been on a ...

Should you buy Baba stock after Charlie Munger Double Down?

The consensus among . 18 Wall Street analysts covering (NYSE: BABA) stock is to Strong Buy BABA stock. Out of 18 analysts , 10 ( 55.56% ) are recommending BABA as a Strong Buy, 5 ( 27.78% ) are recommending BABA as a Buy, 2 ( 11.11% ) are recommending BABA as a Hold, 0 ( 0% ) are recommending BABA as a Sell, and 1 ( 5.56% ) are recommending ...

What's happening with Alibaba stock?

Nov 20, 2021 · Alibaba has been a popular stock on Seeking Alpha for a while, but has also been going down for a while, meaning that many investors are probably looking at losses. Yet, many of these investors ...

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Sep 07, 2021 · Contrarian investors can buy BABA stock with the buyback as a strong potential catalyst. Alibaba Group Holding Ltd. (NYSE: BABA) has had a rough year. BABA stock is down from $232.73 at the end of ...

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Is Baba stock a good buy?

Alibaba Bulls on Parade

Among 16 analysts, only one holds a sell recommendation. All the rest hold a strong buy stance. BABA's average price target for the next 12 months is $176, which, based on the current share price of $104.27, implies an expected upside of more than 68%.
Apr 8, 2022

Will Baba stocks go up?

For its current fiscal year 2022, Alibaba is expected to earn $7.79 a share, down 22% compared to 2021. But growth is expected to ramp up in 2023, up 10% to $8.59.Apr 1, 2022

What is the target price for Baba stock?

Stock Price Targets
High$1,755.14
Median$1,034.03
Low$476.94
Average$1,019.83
Current Price$101.41

Is Baba a good long term investment?

The consensus around BABA stock is currently a “strong buy” - that's based on 22 analysts over the past 3 months who have offered ratings for Alibaba looking forward over the next 12 months. Alibaba stock's average price target is $203, which suggests a 67% upside, as of last check.Jan 6, 2022

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.Jan 2, 2022

Does BABA stock pay dividends?

Alibaba (NYSE: BABA) does not pay a dividend.

Why is Alibaba stock falling?

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.Apr 25, 2022

What is a fair price for Alibaba?

Alibaba Group Holding's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2021 was $3.74. Therefore, the Peter Lynch Fair Value for today is $70.82. As of today (2022-05-08), Alibaba Group Holding's share price is $90.05.

Is Alibaba a buy Zacks?

Zacks' proprietary data indicates that Alibaba Group Holding Limited is currently rated as a Zacks Rank 3 and we are expecting an inline return from the BABA shares relative to the market in the next few months.

Is Alibaba a good investment for 2021?

The Chinese e-commerce giant and internet conglomerate Alibaba Group (BABA -0.82%) had a troubled 2021, as it made headlines for various reasons and its shares tumbled by more than 40%. The stock is now at its lowest valuation since it began trading on the U.S. market.Jan 20, 2022

Is Alibaba undervalued?

Alibaba is a fantastic company and a true leader in e-commerce and coud. I estimate that the stock is about 42% undervalued without taking the regulatory risk into consideration.Mar 24, 2022

Is Alibaba Stock a good buy in 2022, according to Wall Street analysts?

The consensus among 19 Wall Street analysts covering ( NYSE : BABA ) stock is to Buy BABA stock. Out of 19 analysts , 9 ( 47.37% ) are re...

What is BABA's earnings growth forecast for 2022-2024?

( NYSE : BABA ) Alibaba 's forecast annual earnings growth rate of 31.14% is forecast to beat the US Internet Retail industry's average fore...

What is BABA's revenue growth forecast for 2022-2024?

( NYSE : BABA ) Alibaba 's forecast annual revenue growth rate of 9.57% is not forecast to beat the US Internet Retail industry's average f...

What is BABA's forecast return on assets (ROA) for 2022-2025?

(NYSE: BABA) forecast ROA is 75.98%, which is higher than the forecast US Internet Retail industry average of 25.12%.

What is BABA's Price Target?

According to 18 Wall Street analyst s that have issued a 1 year BABA price target, the average BABA price target is $220.67 , with the high...

What is BABA's Earnings Per Share (EPS) forecast for 2022-2024?

(NYSE: BABA) Alibaba's current Earnings Per Share (EPS) is $3.84. On average, analysts forecast that BABA's EPS will be $6.06 for 2022, with the lo...

What is BABA's forecast return on equity (ROE) for 2022-2025?

(NYSE: BABA) forecast ROE is 137.29%, which is considered strong.

China's Rules Are Unclear

Earnings Have Hurt Alibaba Stock

In the past, Chinese companies have used variable interest entities to go public abroad but recent developments show that the government is clamping down on such a loophole.

Analyst price target for BABA

Alibaba's flailing earnings are another major reason for the drop in value; some analysts suggested that the company has reached the end of its growth potential.

BABA earnings per share forecast

Based on 17 analyst s offering 12 month price targets for Alibaba Group Holding Ltd.

BABA revenue forecast

What is BABA 's earnings per share in the next 3 years based on estimates from 2 analyst s?

BABA earnings growth forecast

What is BABA 's revenue in the next 3 years based on estimates from 6 analyst s?

BABA revenue growth forecast

How is BABA forecast to perform vs Internet Retail companies and vs the US market?

How Buybacks Will Help Shareholders

How is BABA forecast to perform vs Internet Retail companies and vs the US market?

What to do With BABA Stock

The buybacks will also help shareholders because the lower number of shares outstanding will increase its earnings per share (EPS). For example, $15 billion represents 3.25% of its 461.61 billion market cap as of Sep. 3.

A look into Alibaba's (BABA) stock performance

The Wall Street Journal says that Alibaba is “one of the first major Chinese tech companies to come under scrutiny by Chinese regulators in a wide-ranging crackdown that started last year.” Alibaba was forced to admit it was using its dominant position to pressure merchants with a practice known as “er xuan yi,” or “choose one of two.” It ended up paying a $2.8 billion fine..

Why Alibaba stock is down

Alibaba stock is coming off of all-time highs and the trajectory is rapid. Following a peak of $307.31 per share in October 2020, the shares have lost 41.24 percent of value.

Should you sell your BABA stock? Maybe

Out of fear that China's tech companies are getting too big, too quickly, and that Americans are reaping the rewards through capital gains, the government has made marked strides in practically shuttering industries—especially tech stocks that are publicly listed in the U.S.

The Stock Has Been Falling

Even with a slightly longer-term horizon, your BABA holdings could be weighing your portfolio down. Look at your positions from a holistic perspective and use your individual stocks as a way to hedge against concentrated volatility.

Munger Loves Alibaba

People love it when they can identify a particular stock that either Buffett or Munger seems to focus on, especially when they increase their position. That is what is going on with BABA stock, especially since it has been falling.

BABA Stock Is Cheap Historically

A recent filing by DJCO showed that it ended 2021 with 602,060 Alibaba ADRs. According to Barron’s magazine, this means it bought a net 300,000 ADRs during Q4 of the Chinese company. It had owned 302,060 Alibaba ADRs at Q3 end. Moreover, according to Barron’s, it had bought 136,740 more ADRs during Q3.

What to Do With BABA Stock

For example, right now analysts estimate that the company will earn $8.39 in earnings per share (EPS) in 2022 and $9.51 for 2023. These estimates are from Refinitiv’s analyst surveys, as shown on the Yahoo! Finance analysis page.

The Delisting Scenario

The stock is cheap for a reason. There is a lot of fear out there that all Chinese stocks will get delisted. In fact, Barron’s magazine has written that investors should not buy BABA stock.

What Happens If a Stock Is Delisted?

After years of keeping a loose rein on Chinese companies listing on U.S. stock exchanges, Beijing has changed its tune.

Our Take

When delisted, the stock becomes no longer publicly listed on the stock market. In Alibaba's case, it wouldn't be traded on the New York Stock Exchange (NYSE).

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