In recent times, people have been very concerned by what has been called the Chinese government’s crackdown on Chinese megacorporations. Indeed, anything happening on this kind of scale is too complex to have a single cause.
As it scales the businesses, investors may see profit margins to expand. Although Alibaba’s growth is slowing due to increasing competition and weakening macroeconomic conditions, its e-commerce business remains strong. While sales of apparel and consumer electronics slowed, the company noted growth in home https://dotbig.com/markets/stocks/BABA/ furnishings. Its anti-business reputation hurts Alibaba’s efforts to export its service. The U.S. is investigating Alibaba Cloud over whether it poses a risk to national security. The American government has also put Alibaba’s AliExpress on a “notorious markets” list over the sale of counterfeit goods.
Alibaba Stock Analysis & Ratings
The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Internet – Commerce stocks are, on average, holding a PEG ratio of 1.38 based on yesterday’s closing prices. The Core Commerce segment provides China retail, China wholesale, International retail, International wholesale, Cainiao logistics services and local consumer services https://twitter.com/forexcom?lang=en through Taobao Marketplace and Tmall. The Cloud Computing segment provides complete suite of cloud services, including database, storage, network virtualization services, big data analytics and others. The Digital Media and Entertainment segment provides consumer services beyond the core business operations. The Innovation Initiatives and Others segment is to innovate and deliver new services and products.
Alibaba recently boosted its stock buyback program to $25 billion. Alibaba scored a small BABA stock price today windfall when GoTo, a Singapore-based delivery service it backed, went public.
Alibaba Stock Price Forecast: Baba Is Undervalued By About 53%
The company is the largest online and mobile commerce company in the world in terms of gross merchandise volume. It is also important to note the recent changes to analyst estimates for Alibaba. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook. Alibaba’s “customer management” segment has shown a strong slowdown in the latest quarter. Prior to the acquisition of Sun Art, this segment contributed 45% of the total revenue for the company and a majority of profits. The Olympics weren’t the reason investors were selling, however.
- The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups.
- Unlike with many meme stocks, there are some solid fundamentals behind these investments.
- In this filing the Chinese tech giant unexpectedly registered “one billion to accommodate the issuance of additional ADS upon the deposit of ordinary shares by current holders who have indicated to the company.”
- As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
- Second, the BABA stock price has also dropped because of the stock’s growing risks that it could be delisted from the New York Stock Exchange .
- The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.
The Zacks Consensus EPS estimate has moved 4.44% lower within the past month. Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. The company is expected to report EPS of $1.31, down 17.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $33.22 billion, up 16.15% from Forex the prior-year quarter. Prior to today’s trading, shares of the online retailer had gained 6.85% over the past month. This has outpaced the Retail-Wholesale sector’s gain of 6.49% and the S&P 500’s gain of 5.65% in that time. The price/operating cash flow metric for Alibaba Group Holding Ltd is higher than only 5.73% of stocks in our set with a positive cash flow.