This AI trading bot, which can be found at Swing Trader, Popular Stocks: Long Bias Strategy (TA&FA), was a high performer in our robot factory, generating 5.5% for BABA over the course of the previous month.
Artificial intelligence (AI) has revolutionized the world of trading by enabling traders to make data-driven decisions based on historical and real-time market data. AI trading robots have the ability to analyze massive amounts of data and generate insights that can be used to make profitable trades. In the case of Alibaba Group Holding Limited (BABA), an AI trading robot generated a 5.49% gain for the company last month.
BABA is a Chinese multinational conglomerate specializing in e-commerce, retail, and technology. The company has been in the news recently due to its strong earnings results. In its Q4 2022 earnings report, BABA reported a revenue of ¥221.08 billion ($34.04 billion), representing a 64% year-over-year increase. The company's net income for the quarter was ¥51.11 billion ($7.86 billion), an increase of 146% compared to the same period in the previous year.
In addition to strong earnings results, BABA's stock price has been on an upward trend since March 29, 2023. On that date, BABA moved above its 50-day moving average, which is a technical indicator that indicates a change from a downward trend to an upward trend. In 28 of 38 similar past instances, the stock price increased further within the following month. This means that the odds of a continued upward trend for BABA are 74%.
The AI trading robot that generated a 5.49% gain for BABA last month likely used technical analysis to identify the upward trend in the company's stock price. Technical analysis involves studying past market data and charts to identify trends and patterns that can be used to predict future price movements. The robot may have also used machine learning algorithms to analyze news and social media sentiment to further inform its trading decisions.
The use of AI trading robots is becoming increasingly popular among traders and investors due to their ability to generate profitable trades based on data-driven insights. As seen with BABA, these robots can identify trends and patterns that may not be apparent to human traders, leading to potentially higher profits. As always, it's important to conduct thorough research and analysis before making any investment decisions.
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BABA advanced for three days, in of 268 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on March 22, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BABA as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for BABA turned negative on March 15, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
BABA moved below its 50-day moving average on March 22, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BABA crossed bearishly below the 50-day moving average on March 27, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BABA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.277) is normal, around the industry mean (17.733). P/E Ratio (13.331) is within average values for comparable stocks, (71.135). Projected Growth (PEG Ratio) (0.551) is also within normal values, averaging (3.233). Dividend Yield (0.014) settles around the average of (0.030) among similar stocks. P/S Ratio (1.432) is also within normal values, averaging (4.178).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. BABA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BABA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an online and mobile commerce company
Industry InternetRetail