Alibaba Group BABA Stock Price, News & Analysis
As the S&P 500 hits new highs, Chinese stocks are closing in on lows reached more than a decade ago. Alibaba-backed augmented reality glasses company Xreal said it received $60 million in new funding, giving the company a valuation of more than $1 billion. Tracking how Big Tech is moving into the European tokenexus Union’s financial services sector is challenging, but it currently does not pose a threat to financial stability, the bloc’s financial watchdogs said … Plus, BABA info will be updated daily in your free Zacks.com Portfolio Tracker. Upgrade to MarketBeat All Access to add more stocks to your watchlist.
- That sounds bad, but actually, the stock’s really down only about 5.5% since Thanksgiving Eve.
- The company also aids other businesses with a vast array of digital and logistical solutions with a reach that spans the globe.
- BABA’s shares currently trade at 7.7x forward earnings and 4.7x forward EBITDA.
- The consensus among Wall Street research analysts is that investors should «moderate buy» BABA shares.
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Chinese internet giant Alibaba (BABA) on Thursday called off plans to spin off its cloud services business, citing U.S. restrictions on chip exports. BABA stock tumbled on the news, which overshadowed an earnings report that topped estimates. Alibaba stock got turned away at its 200-day moving average in mid-May after the Chinese e-commerce giant reported its fourth straight quarter of declining revenue. Alibaba (BABA) on Nov. 16 reported an 18% rise in quarterly profit, with revenue up 6% to $30.8 billion.
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For now, it seems like BABA’s stimulus-driven rally has been cut short, with Evergrande fears now hogging the headlines. Over the next year, look for potential AI announcements to help Alibaba finally move on from https://traderoom.info/ its epic sell-off. On Monday, the stock nosedived by more than 8%, as Evergrande liquidation news sent jitters down investors’ spines. Despite the shocking headline, though, I remain bullish on PDD stock.
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At the time, it looked like BABA stock was ready to break out of a downtrend. It tried to rally above the 50-day line again in late April but sellers knocked the stock lower again. A day earlier, Alibaba stock reversed lower on April 11 after the company officially joined the artificial intelligence race with the launch of its own generative AI system. Jack Ma and Joe Tsai bought about $200 million of the company’s stock in the latest quarter, giving the Chinese tech giant some welcome news amid a monthslong slide.
Rising interest rates and delisting threats for U.S.-listed Chinese stocks only exacerbated that sell-off. An entity linked to Tsai’s family office, Blue Pool, acquired nearly 2 million Alibaba depositary shares worth $152 million in the fourth quarter, according to a Tuesday regulatory filing. Separately, sources familiar with the matter told the Times that Ma acquired $50 million worth of Alibaba’s Hong Kong stock during the same period. Depositary shares are effectively U.S.-traded versions of foreign stock.
A low point came in 2020 and 2021, when Ma publicly criticized Chinese officials and financial watchdogs, and regulatory pressure ultimately derailed a planned IPO for the Ant Group, Alibaba’s financial arm. On the other hand, Alibaba has an EPS Rating of 93 out of a best-possible 99. That highlights the company’s earnings growth despite the lackluster share performance.
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Chinese stocks also found a bid after China retail sales and industrial production in October came in better than expected. Chinese e-commerce and cloud behemoth Alibaba stock has considerably underperformed the broader tech indices, declining by about 7% year-to-date and by over 40% over the last 12 months. On the company’s earnings call, Wu sounded an optimistic tone about the business, saying the «AI boom» is driving demand for computing power. He also said the cloud division «will resolutely implement a strategy of driving growth with AI and of prioritizing public cloud. It will scale up its technology investments in AI-related software and hardware.»
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Chinese stocks surged on Tuesday amid reports of mooted stimulus plans and a sign that tough draft tech rules could be eased. Jack Ma and Joe Tsai have spent hundreds of millions of dollars to acquire Alibaba shares on the open market, signaling confidence in the company’s prospects. Alibaba co-founder Jack Ma has piled into the company’s shares, according to a report. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
Alibaba stock plunged on April 12 on news Japanese conglomerate Softbank sold most of its stake in Alibaba. At one point, Softbank owned a 25% stake in BABA worth more than $100 billion. Alibaba came under selling pressure on Sept. 11 after outgoing CEO Daniel Zhang unexpectedly stepped down as head of the company’ cloud business. Investors of record on Thursday, December 21st will be paid a dividend of $1.00 per share on Thursday, January 18th. Alibaba popularized Singles day as the world’s biggest shopping holiday.
Its earnings per share (EPS) are expected to grow at a CAGR of 31% from fiscal 2023 to 2026. That’s a stellar growth rate for a stock that trades at just 10 times next year’s earnings. If you believe Alibaba can overcome its macro, competitive, and regulatory headwinds, then its stock is simply too cheap to ignore right now.
That sounds bad, but actually, the stock’s really down only about 5.5% since Thanksgiving Eve. But annual return on equity of 14% helps give Alibaba a respectable SMR Rating (sales + margins + return on equity) of B from IBD Stock Checkup (on an A-to-E scale with A tops). Securities and Exchange Commission added Alibaba to a list of Chinese firms at risk of being delisted for not opening their books to U.S. accounting regulators. BABA stock soared 14% on March 28 on reports the company plans to separate into six separate units. 2023 was an incredibly strong year for U.S. stocks but many believe the S&P 500 will push further up in the new year. To play that continued strength, our experts have picked top 10 stocks to buy in 2…
Alibaba also said its board of directors approved the spinoff of its cloud intelligence business within 12 months. Freshippo, the company’s retail chain for groceries and fresh goods also got the go-ahead to pursue an IPO, along with its logistics arm Cainiao Smart Logistics. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.
When markets crashed during the 2008 financial crisis, he made the call to plow some of the company’s money into stocks and started managing its investments. As we march further into 2024, sophisticated large language models (LLMs) could change the way we view our smartphones. Additionally, as Baidu looks to innovate on the front of AI whilst staying within the guidances put forth by regulators, I view the company as potentially one of the cheapest AI stock picks in the market. The messy restructuring, increased competition, and shelved IPO of its cloud arm has left Alibaba’s stock scarred.