Investors Heavily Search Alibaba Group Holding Limited BABA: Here is What You Need to Know November 22, 2024

In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects. Over the last four quarters, Alibaba surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period. For the current fiscal year, the consensus earnings estimate of $9.52 points to a change of +10.4% from the prior year. Alibaba was co-founded by Jack Ma in 1999 when it became clear the Internet and digitization were the future of commerce.

The Chinese holiday is now the largest single day for global online sales each year, and brings in significant revenues for the company. Select to analyze similar companies using key performance metrics; select up to 4 stocks. An e-commerce platform displaying a wide range of products to customers online. In other AI news, lawyers for The New York Times and Daily News have revealed that OpenAI engineers accidentally deleted data potentially relevant to a case their company was being sued on. News publishers The New York Times and atfx review Daily News had filed a copyright infringement lawsuit against OpenAI.

ALIBABA STOCK PRICE HISTORY BY MARKETS INSIDER

I’m adding Alibaba and JD.com to my radar, as I expect both Chinese players should fare better in a post-Beijing Stimulus plan China. Alibaba stock has cratered recently, and buyers fled after the stock hit its peak in October 2024. Alibaba is undervalued, with geopolitical concerns and a slowdown in their core TTG segment justifying some discounting; a Buy rating is warranted. The initial public offering was the largest ever offering at the time, with the company’s market cap reaching $231 billion.

This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Alibaba Group Holding Limited specializes in e-commerce, retail, Internet, and technology. The company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines, and cloud computing services. The company hosts the largest B2B (Alibaba.com), C2C (Taobao), and B2C (Tmall) marketplaces in the world.

Alibaba: Disappointing Stimulus, Slower Growth, And Geopolitical Tensions Making The Stock Cheap

Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. Alibaba also supports the infrastructure of the Internet with a range of products and services that include computing, storage, network, security, database, big data, and IoT connectivity.

1. Alibaba is also ranked 5th largest globally in regards to its work in AI, and it owns the world’s largest B2B, B2C, and C2C eCommerce portals.
2. Alibaba Group Holding Limited reported strong earnings, beating analyst expectations, but cash generation was weak; however, aggressive buybacks continue to reward shareholders.
3. The Chinese holiday is now the largest single day for global online sales each year, and brings in significant revenues for the company.
4. A higher fair value than the current market price drives investors’ interest in buying the stock, leading to its price moving higher.
5. I’m adding Alibaba and JD.com to my radar, as I expect both Chinese players should fare better in a post-Beijing Stimulus plan China.

Earnings Estimate Revisions

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Alibaba was founded in 1999 and is headquartered in Hangzhou, China. Alibaba Group Holding Limited is an eCommerce and Internet technology giant headquartered in the People’s Republic of China. Its core platform, Alibaba.com, is the world’s 3rd largest eCommerce platform by sales. The company also aids other businesses with a vast array of digital and logistical solutions with a reach that spans the globe.

For the next fiscal year, the consensus earnings estimate of $10.83 indicates a change of +13.7% from what Alibaba is expected to report a year ago. Alibaba Group saw its offerings in artificial intelligence (AI) drive growth in both its retail and its cloud businesses during the quarter ended Sept. 30. Alibaba Group will integrate all of its e-commerce platforms into a single business unit to be called the Alibaba E-commerce Business Group, it said in a stock exchange filing on Thursday. While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the what is the forex grid trading strategy cheapest AI stock. Without considering a stock’s valuation, no investment decision can be efficient.