Shares of Alibaba (BABA 1.29%) 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 (DJCO -2.54%) revealed in a filing earlier this week that it upped its stake in Alibaba by 83%.
Full Answer
Why is Alibaba stock still plunging?
17 hours ago · What happened. Shares of Alibaba ( BABA 0.81% ) were up as much as 5.5% today, before settling into a 0.8% gain as of 1:56 p.m. …
Is Alibaba a good investment?
Mar 22, 2022 · Alibaba (NYSE: BABA) stock is rallying after the company stated that it would buy back $25 billion of its own shares. The conglomerate had previously planned to purchase $15 billion of BABA stock ...
Is Alibaba worth buying?
Mar 16, 2022 · Alibaba shares are currently trading at levels that were last seen back in 2016. China’s crackdown on tech companies pushed the stock from the $319 level to the $73 level in just one and a half ...
Is Alibaba stock about to rebound?
Oct 07, 2021 · Currently, analysts expect that Alibaba will report earnings of $9.3 per share this year and $10.82 per share in the next year, so the stock …
Is Alibaba stock gonna 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 future of Alibaba stock price?
Stock Price Forecast The 49 analysts offering 12-month price forecasts for Alibaba Group Holding Ltd have a median target of 162.70, with a high estimate of 275.49 and a low estimate of 74.86. The median estimate represents a +78.22% increase from the last price of 91.29.
Is Alibaba undervalued right now?
The stock is currently trading at just $114 even after the rebound. Thus, the stock is 42% undervalued without considering the regulatory risk. The GF Value Line, a unique intrinsic value estimate from GuruFocus, rates the stock as significantly undervalued.Mar 24, 2022
Is Alibaba stock good buy?
Alibaba Bulls on Parade 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%. Here are some of the most recent ratings provided by analysts.Apr 8, 2022
Will Alibaba stock Recover in 2022?
We are even more assured now that BABA could be approaching its inflection point towards its recovery and potentially see BABA recovering to at least $150 by the end of 2022. That's an implied upside of 67% from the current levels, on NTM EBIT multiple of about 29x.Mar 17, 2022
What will Alibaba stock be worth in 2025?
My valuation implies that Alibaba's shares will be worth $138 in 2025, and this implies a three-year investment CAGR of +9.4% based on the company's last traded share price of $105.42 as of March 2, 2022.Mar 3, 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
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 good long term investment?
Alibaba stock is a strong buy 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 Baba a buy Zacks?
In short, this is how much a company is worth. Investors use this metric to determine how a company's stock price stacks up to its intrinsic value....Momentum Scorecard. More Info.Zacks RankDefinitionAnnualized Return1Strong Buy24.93%2Buy18.44%3Hold9.99%4Sell5.61%2 more rows
Why is Alibaba stock so low?
ALIBABA SURGES AFTER HITTING RECORD LOWS Also on Thursday, JD.com's ADRs sank 15.8%, their biggest daily decline on record, after the e-commerce platform's revenue growth slowed and its expenses widened. Overall tech stocks in Hong Kong were volatile overnight.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.
