Alibaba's valuation has been driven down by misguided fears over delisting, conspiracy theories over its ADR, and investor panic.
Why is Alibaba stock still plunging?
Feb 25, 2022 · Why Alibaba Stock Just Dropped. ... cutting its price target to $135 and warning that Alibaba's "FY22 revenue growth [is going to be] toward the low end of its 20%-23% year-over-year guidance ...
Is Alibaba worth buying?
Nov 24, 2021 · Increasing scrutiny From hitting a high of around $317 per share in October 2020, Alibaba shares have plunged to around $135 as of Nov. 24, and regulatory issues had a …
Is Alibaba a good investment?
Mar 10, 2022 · Alibaba Group Holding ( BABA 0.28%) investors had a rough month in February, as their shares fell 16% in response to a disappointing earnings report and fears of tightened regulation of tech ...
Is Alibaba stock about to rebound?
Mar 09, 2022 · Shares of Alibaba ( BABA -4.54% ) were sliding again last month as the Chinese tech giant posted a disappointing earnings report and continued to be impacted by global tensions and fears of China's...
BABA Stock Falls as China Cracks Down
First, let’s take a look at how we got here. So far in 2021, BABA stock is down around 30%. Its fall really started when Beijing took aim at Alibaba’s founder, Jack Ma. In addition to creating Alibaba, Ma was head of Ant Group, one of the world’s biggest fintech companies.
The Bull Case for BABA Stock
With all that happening, why would I still like BABA stock? And why should you?
The Bottom Line on BABA Stock
I’m not predicting BABA stock will hit $300 again in the next year. But at $165, it is incredibly undervalued. Even the most bearish analysts have set price targets in the low $200s.
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.
Why is BABA stock going down?
Nothing has been going right for BABA stock. After founder Jack Ma made critical comments about regulators, China went after the company in 2020 and blocked Ant Financial’s IPO. Alibaba holds almost a third of the fintech company, and its listing, which would have been the biggest since Alibaba's, would have helped unlock value.
How the Evergrande crisis impacts Alibaba stock
Adding to Alibaba's struggles is the Evergrande crisis, which has led to a crash in both Chinese and global stocks. Although the collapse isn't expected to be as catastrophic as the Lehman Brothers crisis, given Evergrande's over $300 billion in liabilities, it's likely to impact the Chinese economy.
Alibaba's stock price forecast
Despite these issues, analysts' outlook for Alibaba stock is rosy and not many have revised their target price. Their median target of $259.96 implies a 71.6 percent premium, and their highest target of $335.93 is even rosier, implying an upside of almost 122 percent. Most Wall Street analysts rate BABA stock as a “buy.”
Is BABA stock undervalued now?
Alibaba's next-12-month PE multiple is only 15.5x, the lowest it's been since the company’s 2014 U.S. listing. While U.S. tech companies have seen a valuation rerating in that period, it’s a different story for Chinese stocks like BABA.
How low can Alibaba stock go?
Alibaba stock is looking bearish technically and has fallen below all of its key moving averages. Its MACD (moving average convergence divergence) also signals “sell,” and the stock could fall even lower.
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 .
