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 in downward trend: 10-day moving average crossed below 50-day moving average on November 12, 2024
The 10-day moving average for BABA crossed bearishly below the 50-day moving average on November 12, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 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 .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 08, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BABA as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
BABA moved below its 50-day moving average on November 08, 2024 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 of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for BABA entered a downward trend on November 29, 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.
Bullish Trend Analysis
The RSI Indicator 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 Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 58 cases where BABA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 265 cases, the price rose further within the following month. The odds of a continued upward trend are .
BABA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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 (1.584) is normal, around the industry mean (4.151). P/E Ratio (17.992) is within average values for comparable stocks, (59.698). Projected Growth (PEG Ratio) (0.635) is also within normal values, averaging (3.109). Dividend Yield (0.023) settles around the average of (0.026) among similar stocks. P/S Ratio (1.629) is also within normal values, averaging (5.617).
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 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