DiscoverGold
2 days ago
$BABA - The action in 2024 has been similar to the action in 2016. A monthly close above the upper BB in September, followed by a down October and down November so far. As long as it closes the year above the 20 month MA, BABA is likely to trade at much higher prices in 2025.
By: CyclesFan | November 15, 2024
• $BABA - The action in 2024 has been similar to the action in 2016. A monthly close above the upper BB in September, followed by a down October and down November so far. As long as it closes the year above the 20 month MA, BABA is likely to trade at much higher prices in 2025.
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DiscoverGold
5 days ago
2 China-Based Stocks in the Midst of Steep Pullbacks
By: Schaeffer's Investment Research | November 14, 2024
• Shares of Alibaba and JD.Com are both notably lower this quarter
• JD.Com reported earnings today, and Alibaba enters the confessional tomorrow
While Wall Street has enjoyed a post-election rally, U.S.-listed Chinese stocks haven't fared so well. Donald Trump's U.S. presidential victory came with promises of higher tariffs for China, but the country's fiscal stimulus package is also weighing on equities.
Specifically, China's National People's Congress announced 10 trillion yuan ($1.4 trillion) in a debt swap program to help local governments overcome debt burdens, but investors were underwhelmed by the lack of measures to help the housing market and personal consumption.
For JD.Com Inc (NASDAQ:JD) and Alibaba Group Holding Ltd - ADR (NYSE:BABA), earnings are also a factor.
JD.Com Shows Mixed Quarterly Results
E-commerce giant JD.Com reported third-quarter results, and its quarterly profit and revenue jumped 48% and 5.1% year over year, respectively, though the latter fell short of expectations. A rebound in electronics and home appliances, as well as sustained momentum in general merchandise helped drive its earnings beat, but fears of China's economic position are dragging JD.
The security was last seen 4.2% lower at $34.20, extending its quarter-to-date dip to 14.3%. Shares notched a roughly 19-month high of $47.08 on Oct. 24, but the election and stimulus news resulted in a sharp pullback. JD.com stock is now pacing for its worst weekly performance since May.
Options traders are lighting up JD's options pits. So far, 124,000 calls and 37,000 puts have traded hands -- 3 times the average intraday volume. Most popular is the December 45 call, followed closely by the January 17, 2025 50-strike call.
What to Expect from Alibaba's Earnings Report
Alibaba is slated to report fiscal second-quarter results before the open tomorrow, Nov. 15. Per Zacks, the e-commerce name is expected to show earnings of $2.26 per share on revenue of $33.47, the former an 8.63% year-over-year profit gain and the latter representing a 5.61% 12-month rise.
Alibaba stock has a mostly subdued post-earnings past, falling lower after five of its last eight reports. Plus, after its August report, BABA managed a meager 0.1% gain. Over the last two years, the security averaged a 4.9% next-day swing, regardless of direction, which is nearly half the 8.7% move options traders are pricing in this time around.
Ahead of the event, the security is 1.6% lower at $90.54. Shares have managed just one positive weekly performance since the week ended Oct. 11, and are pacing for another substantial weekly drop. BABA sports a 14.7% deficit for the quarter, but remains 17.8% higher since the start of 2024. Year over year, Alibaba stock is up 4.9%.
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fwb
4 weeks ago
Next Earnings Announcement
11/21/2024 Before Market Open
Expected Earnings
2nd Quarter Earnings Announcement Expected: Earnings will tentatively be announced 11/21/2024 before market open. With 16 analysts covering BABA, the consensus EPS estimate is $2.04, and the high and low estimates are $2.43 and $1.61, respectively.
Previous Dividend Payment
$1
Previous Pay Date
July 12, 2024
Previous Ex-Date
June 13, 2024
Frequency
Semi-annual
Annual Dividend Rate (IAD)
$2
Annual Dividend Yield
2.08%
fwb
4 weeks ago
Alibaba’s AI-Powered Cancer Detection Tool Recognized on Fortune’s 2024 Change the World List
NEW YORK, Sept. 25, 2024 /PRNewswire/ -- Fortune's 10th annual Change the World list is led by a group of space pioneers pushing the boundaries of innovation. They include SpaceX, operator of the Starlink satellite internet service; GHGSat, the leading space-based greenhouse gas emissions monitor; and Rocket Lab, the creator of a revolutionary reusable orbital-class small rocket.
Fortune's 2024 list showcases 52 companies globally that have created significant social or environmental impact through their profit-driven strategies and operations, spanning a range of industries including technology, space, e-commerce, and health care. This year's list includes 30 from North America, 12 from Europe, 8 from Asia and Australia, one from Africa, and one from South America.
Fortune Executive Features Editor Matt Heimer said, "This year's edition, our 10th, showcases 52 businesses that continue the Change the World list's legacy of combining public-spiritedness with the profit motive. These companies let their actions speak for themselves—harnessing the creative impulses of capitalism to address social problems and generating revenue while doing so."
Alongside space innovation, the Fortune Change the World list highlights technology companies that showcase AI's potential for positive impact and that are dedicated to using technology for the greater good. Companies showcasing innovative approaches include Ello (No. 5), which deploys AI to address childhood literacy gaps with personalized reading tutorials;
Alibaba Group (No. 8), which detects pancreatic cancer lesions with advanced technology;
The top 10 on the Fortune 2024 Change the World List are:
1 GHGSat, Rocket Lab, SpaceX; (Canada, U.S., U.S.)
2 Grab (Singapore)
3 Viettel Group (Vietnam)
4 Maven Clinic (U.S.)
5 Ello (U.S.)
6 Globant (Argentina)
7 Cognizant and Cisco (U.S.)
8 Alibaba Group (China)
9 Commercial International Bank (Egypt)
10Honeywell (U.S.)
DiscoverGold
4 weeks ago
Bull of the Day: Alibaba Group (BABA)
By: Zacks Investment Research | October 23, 2024
Alibaba Company Overview
Zacks Rank #1 (Strong Buy) stock Alibaba Group (BABA) is a Chinese e-commerce juggernaut that runs popular storefronts such as AliExpress, which caters to global shoppers, and Taobao, which serves its domestic market segment. Like its U.S. counterpart Amazon (AMZN), BABA has businesses that stretch beyond e-commerce, such as its Alibaba Cloud service. Launched in 2009, the cloud business is one of the biggest in China and has ballooned to the second-largest revenue source for the company. Alibaba also benefits from strong momentum in its international wholesale, digital payments, and logistics businesses.
China Stimulus and Recovering Economy
The Chinese government completed a full 180 degree turn in 2024 and delivered a massive stimulus package. As if slashing interest rates and loosening restrictions weren’t enough, Chinese government officials promise to do more moving forward. People’s Bank of China Governor Pan said that the reserve requirement ratio could be reduced again this year and that the loan prime rate will likely be lowered on Monday. Meanwhile, China recently reported more robust growth numbers, and retail sales impressed investors. A flood of liquidity and a more robust economy bode well for Chinese stocks like BABA. Also, understand that the Chinese economy is coming from such a trough that even a reversion to the mean would result in a massive move for these stocks.
BABA’s Dirt-Cheap Valuation
Though BABA shares have gained a healthy 34% year-to-date, its valuation remains at bargain basement lows. For instance, BABA’s price-to-sales ratio of 1.88x is close to all-time lows and is well off the all-time high of 18x in 2018.
Image Source: Zacks Investment Research
BABA Stock Repurchase Program
Alibaba is in the middle of a massive share repurchase program. The company bought back shares on almost every trading day in September. On October 17th, BABA bought back more than $17 million worth of shares. Share buybacks can be bullish because they reduce the number of shares outstanding. Apple (AAPL) is an excellent precedent of this phenomenon. AAPL shares stagnated for years before Carl Icahn and other institutional investors urged the company to repurchase shares.
Smart Money is Invested in BABA
The 13F disclosure requires institutional investors with more than $100 million in assets under management to divulge their positions. The most recent 13F disclosures revealed that BABA was a top holding for some savvy investors such as Michael Burry and David Tepper.
HK Listing & Stock Connect Program to Boost Investor Access
Millions of investors will gain access to BABA shares through a Hong Kong listing and China’s “Stock Connect” program. Goldman Sachs (GS) and Morgan Stanley (MS ) expect $10-$20 billion inflows into the stock.
First Pullback After Breakout
BABA shares are retreating towards their 50-day moving average for the first time since the massive stimulus-induced breakout. Though there is room for more downside, the first pullback of this nature after a major breakout is typically buyable.
Image Source: TradingView
Bottom Line
China’s dominant e-commerce player is making a comeback driven by strength in its international business. BABA enjoys a dirt-cheap valuation, increased investor access, and institutional sponsorship.
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