GET DAILY SIGNALSAlibaba (BABA, $175.57) reports estimate-smashing fourth quarter results
Chinese tech giant Alibaba clocked an impressive fourth quarter, despite the ongoing US-Sino trade war, with revenue rising 51% to $13.9 billion beating estimate of $13.3 billion. The number of active customers reached 654 million, rising 18 million from the previous quarter and 102 million from the same period a year ago.
The main driver for this growth was e-commerce businesses made up of Taobao marketplace and Tmall. The core commerce revenue of the company rose 54% to $11.8 billion during the period, as the company continued to penetrate across the less developed cities and acquire new customers.
Owing to the increase in average spending per customer, Alibaba Cloud business emerged as a strong revenue generator as the cloud computing segment saw its revenue jump 76% to $1.15 billion.
However, operating income fell 5% during the quarter owing to $250 million lawsuit settlement in the U.S. and spending to consolidate Ele.me as well as increased inventory and logistics expenses at its new retail and direct sales businesses. However, investment income came at $2.8 billion during the said quarter offsetting that drop in operating income. As a result, adjusted earnings per share increased 50% to $1.28 beating expectations of $0.93.
By 2020, the company plans to grow its revenue by 32.7% to 500 billion RMB, or $74.5 billion, apparently unperturbed by the recently escalated U.S.-China trade war. The company confirmed negotiations to amend trade imbalance as well as addressing infringements on intellectual property rights. These will encourage more imports from outside of China.
BABA's RSI Indicator ascending out of oversold territory
The RSI Oscillator for BABA moved out of oversold territory on November 02, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 32 similar instances when the indicator left oversold territory. In 28 of the 32 cases the stock moved higher. This puts the odds of a move higher at 88%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 04, 2026. You may want to consider a long position or call options on BABA as a result. In 59 of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 75%.
The Moving Average Convergence Divergence (MACD) for BABA just turned positive on November 04, 2026. Looking at past instances where BABA's MACD turned positive, the stock continued to rise in 33 of 49 cases over the following month. The odds of a continued upward trend are 67%.
Following a +3.95% 3-day Advance, the price is estimated to grow further. Considering data from situations where BABA advanced for three days, in 180 of 254 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
BABA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 45 of 56 cases where BABA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 80%.
BABA moved below its 50-day moving average on November 09, 2026 date and that indicates a change from an upward trend to a downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
The Aroon Indicator for BABA entered a downward trend on October 27, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 42 (best 1 - 100 worst) indicates that the company is fair valued 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 (0.259) is normal, around the industry mean (22.398). P/E Ratio (3.472) is within average values for comparable stocks, (9.569). Projected Growth (PEG Ratio) (0.505) is also within normal values, averaging (1.774). Dividend Yield (0.038) settles around the average of (0.033) among similar stocks. P/S Ratio (1.660) is also within normal values, averaging (1.328).
The Tickeron Price Growth Rating for this company is 73 (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 SMR rating for this company is 78 (best 1 - 100 worst), indicating weak sales and an unprofitable 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 PE Growth Rating for this company is 96 (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 100 (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.
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General Information
an online and mobile commerce company
Industry InternetRetail
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