Shares of Alibaba (BABA 14.67%), the Chinese tech giant, took a dive today in a broad sell-off in Chinese stocks in response to news that Chinese real estate giant Evergrande Group could be forced into bankruptcy. Alibaba closed down 5.4% while the China MSCI ETF lost 4% and the S&P 500 pulled back 1.7%. Image source: Alibaba.
Will Alibaba ever pay a dividend?
Alibaba does not currently pay a dividend to shareholders. However, in contrast to other high-growth tech stocks that do not pay dividends and might never, such as Netflix (NFLX), Uber (UBER), and Lyft (LYFT), Alibaba is highly profitable and generates positive free cash flow.. As a result, the company has the capacity to initiate and sustain a dividend.
How low will Baba go?
The share price for Chinese e-commerce giant Alibaba (BABA) has been moving higher since it sank to a three-and-a-half year low in early December. It shed 49% of its value in 2021, after reaching an all-time high in October 2020. The stock has been plagued by a series of challenges, from the Chinese government’s crackdown on technology companies, a slowdown in the Chinese economy during the ...
Why is Baba so low?
The company is under the uncomfortable magnifying glass of reviews by American and Chinese regulators, which is why share prices have been trending downward in recent months. It may make sense to pick up a few Alibaba shares at these low prices, given the company's impressive revenue growth.
What is the target price for Baba?
Under these very reasonable growth assumptions, my long-term model on Alibaba pegs the company’s 2025 earnings potential at $20 per share. Based on a forward price-earnings multiple of 20, which is a historically average multiple for the information technology sector, that implies a 2024 price target for BABA stock of $400.
Will Baba stock recover?
BABA 3Y Stock Price As a result, the stock is expected to slowly recover to a price target of $180 in the next two or three years, as the Chinese government slowly regains global investors' trust over time.
Is Alibaba a good buy now?
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.
Is Alibaba a buy or sell?
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%.
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 Alibaba stock a Buy, Sell or Hold?
Alibaba stock has received a consensus rating of buy. The average rating score is and is based on 49 buy ratings, 7 hold ratings, and 2 sell ratings.
What was the 52-week low for Alibaba stock?
The low in the last 52 weeks of Alibaba stock was 73.30. According to the current price, Alibaba is 128.89% away from the 52-week low.
What was the 52-week high for Alibaba stock?
The high in the last 52 weeks of Alibaba stock was 230.88. According to the current price, Alibaba is 40.92% away from the 52-week high.
What are analysts forecasts for Alibaba stock?
The 58 analysts offering price forecasts for Alibaba have a median target of 266.83, with a high estimate of 407.00 and a low estimate of 65.00. Th...
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.
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