Baba Stock Forecast: Is BABA stock Delisting? currently trading in green at $118

Baba Stock Forecast: Is BABA stock Delisting? currently trading in green at $118

Uncategorized US Stocks
December 26, 2021 by Mathiew Evengelin
18
Baba Stock Forecast: ADR is expected to trade between $112.11 and $119.82. The overall recommendation is neutral 1 of 3 momentum indicators are positive. 2 analyst Alibaba Group Holding Limited Alibaba is trading at 0.72% Higher at $118.26 in the current trading session. Metric Value Share Volume 17.5M Average Share Volume 15M Forward P/E(1Year) 18.03

Baba Stock Forecast: ADR is expected to trade between $112.11 and $119.82. The overall recommendation is neutral

1 of 3 momentum indicators are positive.

2 analyst

Alibaba Group Holding Limited

Alibaba is trading at 0.72% Higher at $118.26 in the current trading session.

BABA Stock Forecast
Metric
Value
Share Volume
17.5M
Average Share Volume
15M
Forward P/E(1Year)
18.03

Baba Stock Forecast: Momentum Summary

Metric
Indicator
Price
Higher
Technical
Sell
Sentiment
Negative

Baba Stock Forecast: Performance Chart

1 day
5 day
1 Month
1 Year
+0.72%
-0.69%
-11.02%
-46.84%

Baba Stock Forecast: Technical Analysis

Source
Support
Resistance
Recommendation
$112.25(S3)
$119.27(R1)
Sell
$111.97(S3)
$120.37(R1)
Buy

Baba Stock Forecast: Sentiment Analysis

Day
Positive
Negative
Sentiment
Day 7
12.7%
15.5%
Negative
Day 1
11.8%
22%
Negative

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Baba Stock Forecast: Latest News and Tweets

Tickeron on Twitter: “$BABA in -4.97% Downtrend, declining for three consecutive days on December 16, 2021. View odds for this and other indicators: https://t.co/CsugX7Vr5l #AlibabaGroupHolding #stockmarket #stock pic.twitter.com/MPN5sGq04p / Twitter”

BABA in -4.97% Downtrend, declining for three consecutive days on December 16, 2021. View odds for this and other indicators: https://t.co/CsugX7Vr5l #AlibabaGroupHolding #stockmarket #stock pic.twitter.com/MPN5sGq04p

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Baba Stock Forecast: Latest Videos

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Baba Stock Forecast: 12 Month Forecast

Source
Overall Analysts’ Consensus
Upper Range
Lower Range
CNN Money
Buy
$302.8
$32.93
Nasdaq.com
Buy
$252
$162
Investment.com
Buy
$301
$34

Baba Stock Forecast: Latest News and Developments

Alibaba Group Takes a Fresh Look by Appointing New CFO

  • Alibaba Group Holdings Ltd has decided to reorganize its domestic and international businesses by appointing new chief financial officer. The plan is to form two new units for e commerce business- international digital commerce and China digital commerce to become more agile and to keep pace with changing scenarios in the market.
  • International digital commerce will manage AliExpress, Alibaba.com and Lazada. The unit is expected to be headed by Jiang Fan. China digital commerce unit will manage domestic business and will be headed by Trudy Dai, a founding member of Alibaba.
  • The company’s deputy chief financial officer Toby Xu will succeed Maggi Wu from April. Wu has helped to lead three Alibaba related company’s public listings and will continue to be on executive director board for Alibaba.

Government Push for Growth After Months Long Crackdown

  • Alibaba showed signs of recovery in last week amid improved sentiments after Beijing’s move to bolster the economy. Shares soared as much as 12% on 7.12.2021 after being down by more than 30% in last one month.
  • China’s central bank announced on Monday (6.12.2021) that it plans to reduce most banks reserve requirement next week and as a results plans to pump 1.2 trillion yuan ($188 billion) of liquidity in the market. This step is a sign policymakers concern over economic growth and so more easing measures should follow in the coming weeks.
  •  Alibaba has been struggling and slumped 58 percent from February high after Beijing’s months long crackdown on the technology sector targeting monopolistic practices by big giants and data security in these companies. These factors have kept investors at distance from Alibaba.

Alibaba Group Challenges in Near Term

  • For over a decade, Alibaba has been China’s e commerce king but recently it is losing its position by influx of competitors in the sector. Alibaba is seeing growth deaccelerating in customer management revenue (CMR) which grew at just 3% in recent quarter, down from 20% growth in the same quarter a year ago.
  • ByteDance Ltd’s Douyin- sister app to TikTok and Pinduoduo Inc has taken a lead in rural and live streaming e commerce.
  • Douyin boasts 600 million plus daily active users and also allowed merchants to open stores on its platform in 2018. On an average, merchants spend 1871 minutes on average in October on Douyin and only 350 minutes on Taobao- live streaming platform of Alibaba Group.
  • Other competitor – Pinduoduo is popular in rural market due to rock bottom pricing and group buying model encouraging purchases to be shared on messaging platform to get discounts. Its GMV surged 66% to 1.67 trillion yuan in 2020. So growth is much stronger than Alibaba’s recent results.
  • Other competitors include JD.com, Meituan and Baidu, giants in search and food delivery are also venturing in e-commerce offerings, and smaller startups are targeting segments like footwear and makeup.
  • Alibaba has also been hurt by regulatory crackdown and it is forced to abandon a policy facilitating merchants to set up exclusive shops on its platform. Analysts are not too optimistic that Alibaba can turn the situation in its favor and can regain the lost position in the market.

Alibaba Future Outlook

  • Firstly, it is to be kept in mind that Alibaba is an established giant and is not supposed to show exponential growth trajectory much like what is expected from newbies like Douyin. Also, it is well understood that market will be shared among all the incomers and Alibaba is no exception to that.
  • Didi Global Inc decision to pull out from New York Stock Exchange has been adding pressure on US listed Chinese firms and Alibaba investors have started swapping US listed shares for Hong Kong stock to contain risk amid increasing Sino-US tensions. 
  • There has been abundance of negative news, but Alibaba is holding the rope to battle it out and rise in difficult times by taking measures like appointing new CFO and changing business modalities.
  • Finally, owning a giant at multiyear low valuations is not a bad idea, as Sun is expected to shine again on Alibaba by Government support as seen by China central bank measures.

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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