The stock has moved primarily on fears surrounding the Chinese government's crackdown on tech stocks and the lingering uncertainty of regulatory action from Beijing. The result is that the stock is now divorced from fundamentals, trading at just a couple times forward sales. Alibaba has shed over 50% of its value in the past 12 months.
Why is Alibaba stock still plunging?
If the probe reveals anything compromising, it will likely send BABA stock plunging. Wall Street won’t react well to concerns from the U.S. government that a company as powerful as Alibaba could be gaining access to users’ personal information and intellectual property.
Is Alibaba worth buying?
With it, small business owners can find a reliable supplier for all of their selling needs. Depending on your needs, you can either buy a single item from Alibaba, or agree to sell with a manufacturer using a dropshipping methods. People who use Alibaba for dropshipping often benefit from high-volume discounts.
Is Alibaba a good investment?
Alibaba is often considered a solid long-term investment on China's booming tech sector. It owns the country's largest e-commerce and cloud infrastructure platforms, its ecosystem extends across ...
Should I Sell Baba stock?
Alibaba has created a new unit to focus on ... Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough ...
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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What happened
Shares of Alibaba Group Holding (NYSE: BABA) slid 2.4% in afternoon trading Friday, as of 1 p.m. ET, after two separate investment banks lowered their price targets on the Chinese e-commerce giant in response to a weak earnings report.
So what
For the fiscal third quarter of 2022, Alibaba reported a 10% rise in sales yesterday, which nonetheless fell about $800 million short of analyst forecasts. Earnings were ahead of estimates -- $2.65 per share -- but right now, investors seem more concerned about the deceleration in sales growth.
Now what
All that being said, $200 -- or even $135 a share -- still implies gains of anywhere from 27% to 87% in Alibaba's stock price over the course of the next 12 months. Despite lowering price targets, neither analyst is retreating from its advice to buy Alibaba shares.
The Motley Fool
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.
What happened
Shares of China's Alibaba Group Holding (NYSE: BABA) stock tumbled on Tuesday, down 2.8% as of 1:45 p.m. ET after Reuters reported that the U.S. government is investigating its cloud business "to determine whether it poses a risk to U.S. national security."
So what
The Biden administration's investigation centers on worries that the Chinese government might gain access to personal information of U.S. customers of the Chinese e-commerce giant, the news agency reports. Corollary concerns regarding the safety of intellectual property stored on Alibaba Cloud and about Beijing's ability "to disrupt access by U.S.
Now what
If that happens, Alibaba won't just lose its existing revenue stream -- but any potential to grow its cloud business in the U.S. at all.
The Motley Fool
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.
Alibaba (BABA) stock forecast
BABA stock did manage to retrace back to the 9-day moving average but has not broken back above it. The stock, therefore, maintains its bearish trend. To turn bullish, BABA needs to first break the 9-day moving average at $198.83, but the key resistance to break is really $230 as this would end the series of lower highs in place since October 2020.
US Permission Granted: Retail Sales and Nonfarm Payrolls give the Fed options Premium
Consumer sentiment last month was the worst in almost a decade but depression did not keep anyone home. Consumer spending saw the largest gain in ten months.
