Why did Alibaba go up today?
Shares of Alibaba ( BABA 1.29% ) were moving higher Tuesday after the Chinese tech giant announced an increase in its share buyback program, signaling that management sees the stock as undervalued. As of 12:22 p.m. ET, the stock was up 10.7%.Mar 22, 2022
Why are Chinese stocks surging?
Asian stock prices have surged for a second day after the Federal Reserve announced its first interest rate hike since 2008 and China promised support for its real estate and internet industries.Mar 17, 2022
Is it smart to buy Alibaba stock?
A risk worth taking. Even after Wednesday's surge, Alibaba trades at a price-to-earnings ratio of just 12. While the Chinese government remains a risk and the stock will never earn the valuation it would as an equivalent American company, it appears that the worst is over based on regulators' recent comments.Mar 18, 2022
Is Baba stock expected to rise?
Stock Price Forecast The 47 analysts offering 12-month price forecasts for Alibaba Group Holding Ltd have a median target of 163.90, with a high estimate of 275.75 and a low estimate of 74.93. The median estimate represents a +61.48% increase from the last price of 101.50.
Is Alibaba a Chinese company?
Alibaba has grown to be one of China's largest companies, with extensive influence in the world. It first gained control over the Chinese e-commerce market, with a reported 69% of online retail sales in China going through the company in 2021.
Is Alibaba a Chinese stock?
“We believe Alibaba, as one of the most widely owned stocks within the China Internet sector, will continue to face stock selling pressure in the near term.” The Chinese market is down overall amid a new Covid-19 lockdown in Shenzhen, where many of the country's technology giants operate.Mar 14, 2022
Will Alibaba recover?
Alibaba is still a strong company, and the stock could eventually recover, especially as it trades at a price-to-earnings ratio of 12. However, the near-term headwinds facing the company are substantial, and that doesn't seem likely to change anytime soon.Mar 8, 2022
Is Alibaba bigger than Amazon?
When it comes to sheer size, Amazon is vastly larger than Alibaba. Amazon's market-cap of $1.5 Trillion dwarfs Alibaba's $640+ Billion, and when you calculate each firm's revenue numbers, the disparity is even greater: Amazon had revenues of $126B from its last quarter, whereas Alibaba had $34B.
Is Baba a buy or sell?
(NYSE:BABA)...BABA Ratings.SA AuthorBuy3.92Wall StreetStrong Buy4.50QuantHold3.051 more row•1 day ago
Does Warren Buffett Own Alibaba?
It first disclosed a stake in Alibaba in April last year worth US$37 million or almost one-fifth of its portfolio. The 98-year old Munger, who is also the vice-chairman of Berkshire Hathaway, has been bullish on China.Jan 5, 2022
Is Alibaba a good investment for 2021?
Alibaba shares have had an excellent week because the stock looks cheap and investors are buying the big dip. After losing almost 50% of its value in 2021—amid intensifying regulatory pressures and concerns around slowing growth—shares in the Chinese tech giant have climbed more than 9% since the start of 2022.Jan 7, 2022
Why is BABA down so much?
Chinese companies trading in the U.S. opened sharply lower on Thursday. Chinese e-commerce and tech companies listed in the U.S. have declined significantly since last year after China's regulators began cracking down on giants like Alibaba and JD.com. BABA is down 28% year-to-date following a decline of 48% in 2021.Mar 10, 2022
A U.S.-China summit and Charlie Munger's buying seem to be pushing the stock higher
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What happened
Shares of Alibaba ( NYSE:BABA) were rallying today on news of thawing tensions between the U.S. and China after President Joe Biden and Chinese President Xi Jinping agreed to hold a virtual summit. Additionally, Charlie Munger's Daily Journal ( NASDAQ:DJCO) revealed in a filing earlier this week that it upped its stake in Alibaba by 83%.
So what
Chinese stocks are often sensitive to geopolitical events, and news that Biden and Xi will meet later this year could signal a thaw in relations between China and the U.S. The Trump administration attempted to pressure China via a trade war, and Biden seems to want to unwind some of the tariffs imposed during the Trump years.
Now what
For a nearly 10% move in a mega-cap stock, the news is not particularly meaningful. There's no change in Alibaba's business fundamentals or China's tightening regulatory framework, which is the primary reason why the stock is down 50% from its highs a year ago.
Alibaba (BABA) stock news
Friday's rally was even more impressive (BABA stock closed up over 3%) as Goldman Sachs had cut its price target for the stock on Friday. Goldman cut its price target from $303 to $253. Monday has seen fellow Chinese tech stock Meituan surge in Hong Kong as the Chinese regulator fined the company less than analysts had feared.
Alibaba (BABA) stock forecast
We have to turn bullish on BABA following the move on Friday. Baba stock is now trading above the 9 and 21-day short-term moving averages. The Relative Strength Index (RSI) is above 50, and the Moving Average Convergence Divergence (MACD) has crossed and is giving a bullish signal. Volume has also increased during the move higher.
