Will Alibaba (BABA, $230.14) face $1 bn fine?
Alibaba is reportedly being considered for a penalty by the Chinese government.
According to unnamed sources cited by the Wall Street Journal, a record fine of more than $975 million is being mulled by the China antitrust regulators for alleged abuse of Alibaba's dominant market position. The report also indicated that regulators want Alibaba to distance itself from founder Jack Ma and to avoid practices that pressure some sellers to operate only on its platforms.
Regulators are considering divestiture of Alibaba assets unrelated to its main online-retailing business, according to the Journal's report.
China made its regulatory crackdown on Alibaba and its affiliate Ant Financial Group apparent starting late last year, when the Chinese President Xi Jinping decided to halt the initial public offering of Ant Group.
However, China denied that is considering any such penalty.
According to another report by Wall Street Journal, knowledgeable sources told that China's government has asked Alibaba to dump some of its media assets over concerns about Alibaba's influence over public opinion.
BABA's RSI Indicator ascends from oversold territory
The RSI Indicator for BABA moved out of oversold territory on November 25, 2024. 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 34 similar instances when the indicator left oversold territory. In of the 34 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. 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 upward trend is expected.
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 51 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 (1.558) is normal, around the industry mean (4.875). P/E Ratio (17.733) is within average values for comparable stocks, (60.817). Projected Growth (PEG Ratio) (0.566) is also within normal values, averaging (2.753). Dividend Yield (0.012) settles around the average of (0.028) among similar stocks. P/S Ratio (1.606) is also within normal values, averaging (5.823).
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 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