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May 28, 2019
Increased tariffs on China is likely to negatively impact U.S. growth

Increased tariffs on China is likely to negatively impact U.S. growth

Escalating tensions between two of the largest economies of the world, U.S. and China, reached another level at the beginning of this month after President Trump announced an increase in tariffs on $200 billion of Chinese goods from 10% to 25%. Further, he also threatened to apply 25% tariffs on the remaining imports from China worth around $300 billion.

However, according to chief U.S. economist at Nomura - Lewis Alexander, levying 25% tariff on all Chinese goods entering American borders is likely to hurt U.S. economic growth especially when the economy is already showing signs of a slowdown in the recent months.

He emphasized that the import tariffs are majorly paid by the American importers and the American consumers rather the Chinese, therefore it can result into core inflation in America growing by 0.5% point over the next 12 months.

He further added that owing to this tariff hike the likely impact on U.S. economic growth is how trade developments affect business confidence and investments in the coming months.

The trade war, according to the research published by the New York Federal Reserve Bank, is likely to cost a typical American household $831 per year.

Related Ticker: BABA

BABA's RSI Oscillator ascends from oversold territory

The RSI Indicator for BABA moved out of oversold territory on September 17, 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 29 similar instances when the indicator left oversold territory. In 26 of the 29 cases the stock moved higher. This puts the odds of a move higher at 90%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on September 18, 2026. You may want to consider a long position or call options on BABA as a result. In 55 of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 69%.

The Moving Average Convergence Divergence (MACD) for BABA just turned positive on September 21, 2026. Looking at past instances where BABA's MACD turned positive, the stock continued to rise in 41 of 47 cases over the following month. The odds of a continued upward trend are 87%.

Following a +2.71% 3-day Advance, the price is estimated to grow further. Considering data from situations where BABA advanced for three days, in 183 of 258 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.

Bearish Trend Analysis

The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.

BABA moved below its 50-day moving average on August 31, 2026 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 September 04, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 18 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 78%.

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%.

BABA broke above its upper Bollinger Band on September 21, 2026. 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 September 22, 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 PE Growth Rating for this company is 16 (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 Seasonality Score of 50 (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 Valuation Rating of 58 (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 (1.846) is normal, around the industry mean (57.057). P/E Ratio (26.247) is within average values for comparable stocks, (39.827). Projected Growth (PEG Ratio) (0.540) is also within normal values, averaging (1.801). Dividend Yield (0.009) settles around the average of (0.017) among similar stocks. P/S Ratio (1.660) is also within normal values, averaging (1.321).

The Tickeron Price Growth Rating for this company is 58 (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 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 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 94, placing this stock worse than average.

Notable companies

The most notable companies in this group are Amazon.com (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), PDD Holdings (NASDAQ:PDD), eBay (NASDAQ:EBAY), JD.com (NASDAQ:JD), Wayfair (NYSE:W), Chewy (NYSE:CHWY), Vipshop Holdings Limited (NYSE:VIPS), Revolve Group (NYSE:RVLV), Jumia Technologies AG (NYSE:JMIA).

Industry description

The internet retail industry includes companies that sell products and services through the Internet. With more and more consumers using online retailers, the companies have seen a big increase in the use of their services. Some of the companies in the group are focused on selling business-to-business products and services. Others sell business-to-consumer products and services. Internet retailers offer a wide variety of products like books, apparel, and electronics. Some companies even specialize in only one or two categories. One potentially critical factor for players to thrive in this space is the quality and speed of product delivery. This requires an investment in efficient distribution networks. Things like logistics are important factors in the success in the extremely competitive industry. For a company to stay relevant in the industry it must have effective pricing strategies and upgraded websites. The websites must be easy to navigate and engaging for customers. In addition to the revenues generated from straight sales, internet retailers can generate revenue from subscription fees and advertising. Amazon.com, Inc., Alibaba Group, and JD.com are some of the global leaders.

Market Cap

The average market capitalization across the Internet Retail Industry is 88.43B. The market cap for tickers in the group ranges from 585 to 2.79T. AMZN holds the highest valuation in this group at 2.79T. The lowest valued company is PIKM at 585.

High and low price notable news

The average weekly price growth across all stocks in the Internet Retail Industry was -2%. For the same Industry, the average monthly price growth was -12%, and the average quarterly price growth was -9%. GLBE experienced the highest price growth at 14%, while IPW experienced the biggest fall at -54%.

Volume

The average weekly volume growth across all stocks in the Internet Retail Industry was -17%. For the same stocks of the Industry, the average monthly volume growth was -10% and the average quarterly volume growth was -42%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 55
P/E Growth Rating: 72
Price Growth Rating: 66
SMR Rating: 76
Profit Risk Rating: 94
Seasonality Score: 0 (-100 ... +100)
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General Information

an online and mobile commerce company

Industry InternetRetail

Industry
Internet Retail
Address
1 Matheson Street, Causeway Bay
Phone
+852 22155100
Employees
131462
Web
https://www.alibabagroup.com
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Increased tariffs on China is likely to negatively impact U.S. growth