Alibaba (BABA, $219.84) beats Q3 earnings estimate; has record Singles Day sales
Alibaba Group Holding Co. reported third quarter earnings that topped analyst expectations.
The e-commerce giant's diluted non-GAAP earnings for the three months ending in December came in at $2.61 per share, exceeding the Street's estimate of around $2.27 per share.
Alibaba’s total revenue surged +38% year-over-year to $23.192 billion, which is higher than analysts' estimates of a $22.87 billion.
The company’s cloud computing segment’s revenues climbed +62% to a record $1.5 billion.
Alibaba garnered 10 billion yuan ($1.43 billion) in sales over the first 90 seconds of Singles' Day. The shopping bonanza’s sales touched $38.379 billion in gross merchandise value as of its closing, compared to last year's 24-hour total of $30.8 billion.
Furthermore, CEO Daniel Zhang mentioned the company’s response to the coronavirus. “We mobilized Alibaba ecosystem’s powerful forces of commerce and technology to fully support the fight against the outbreak, ensure supply of daily necessities for our communities and introduced practical relief measures for our merchants," he said. "No matter past, present or future, we remain true to our mission and we will support our merchants to overcome this challenging time together."
BABA sees its Stochastic Oscillator ascending out of oversold territory
On December 26, 2024, the Stochastic Oscillator for BABA moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 59 instances where the indicator left the oversold zone. In of the 59 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BABA's RSI Oscillator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BABA just turned positive on December 24, 2024. 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BABA advanced for three days, in of 258 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 20, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BABA as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent 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 .
BABA broke above its upper Bollinger Band on December 09, 2024. 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 December 04, 2024. 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 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 (1.545) is normal, around the industry mean (4.589). P/E Ratio (17.585) is within average values for comparable stocks, (58.411). Projected Growth (PEG Ratio) (0.561) is also within normal values, averaging (2.665). Dividend Yield (0.012) settles around the average of (0.027) among similar stocks. P/S Ratio (1.593) is also within normal values, averaging (5.667).
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 90, placing this stock worse than average.
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General Information
an online and mobile commerce company
Industry InternetRetail