Alibaba( BABA, $201.87) beats earnings estimates, on online sales boost in pandemic period
Alibaba Group Holding Co. reported fourth quarter earnings that surpassed analysts’ expectations. The pandemic-induced lockdown seemed to boost online consumer spending.
The e-commerce behemoth’s diluted non-GAAP earnings for the three months ending in March, came in at $1.30 per share, exceeding the Street's estimate of around 86 cents per share.
Revenue increased +22% year-over-year to $16.144 billion, also beating analysts' estimates of a $15.28 billion.
Cloud computing revenues surged +58% to a record $1.725 billion.
"The pandemic has fundamentally altered consumer behavior and enterprise operations, making digital adoption and transformation a necessity", said CEO Daniel Zhang.
Meanwhile, potential risks to China shares trading on U.S. exchanges have emerged following the recently passed Holding Foreign Companies Accountable Act by U.S. Senate lawmakers. The bill would require non-U.S. companies listed on domestic exchanges to prove they are "they are not owned or controlled by a foreign government.”
BABA's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for BABA turned positive on January 17, 2025. Looking at past instances where BABA's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 22, 2025. You may want to consider a long position or call options on BABA as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
BABA moved above its 50-day moving average on January 24, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for BABA crossed bullishly above the 50-day moving average on January 28, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BABA advanced for three days, in of 256 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
BABA broke above its upper Bollinger Band on January 28, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for BABA entered a downward trend on January 23, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of (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 (1.764) is normal, around the industry mean (4.653). P/E Ratio (20.123) is within average values for comparable stocks, (62.161). Projected Growth (PEG Ratio) (0.651) is also within normal values, averaging (2.824). Dividend Yield (0.010) settles around the average of (0.025) among similar stocks. P/S Ratio (1.823) is also within normal values, averaging (5.517).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BABA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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 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 89, placing this stock worse than average.
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General Information
an online and mobile commerce company
Industry InternetRetail