The Alibaba stock suffer strong selling pressure this Tuesday after China’s main economic planning agency, in a highly anticipated briefing by investors, did not announce new details on the recently announced stimulus measures. It is worth remembering that this Chinese company is listed in the Buenos Aires market through its Cedear BABA.
Alibaba shares fall almost 7%, which represents a good buying opportunity, since it should be remembered that in the last month it had already risen more than 35%.
China’s Hang Seng Index plunged 9%
Alibaba (BABA) rose sharply on September 24 after China eased lending standards to stimulate an economy that has been slow to recover. Other measures included cuts in interest rates, reducing minimum down payments on mortgages, and encouraging banks to lend more money to investors who buy stocks.
The news fueled a broad rally in several Chinese internet stocks such as JD.com (JD), PDD (PDD), Baidu (BIDU) and Bilibili (BILI). Alibaba shares broke the downtrend during the week of September 20 after the company announced a series of new open source artificial intelligence models as well as text-to-video AI technology.
BABA also gapped higher in late August after Chinese regulators said the company had successfully completed a three-year regulatory “rectification” process. Alibaba was fined $2.6 billion in 2021 for monopolistic practices.
It hasn’t been easy times for Alibaba stock in recent years due to weakened fundamentals. Alibaba is no longer the growth engine it was in the past, but revenue growth is expected to accelerate in the coming quarters as the Chinese consumer continues its slow recovery.
BABA Fundamentals
Recent Earnings: In mid-August, Alibaba reported an adjusted profit of $2.26 per share. Revenue growth accelerated from the previous quarter, increasing 4% to $33.5 billion.
Sellers hit Alibaba shares hard on May 14 despite slightly beating earnings, although buyers drove shares well above closing lows. Buyers were in control over the next three trading sessions, sending the stock more than 11% higher.
On an adjusted basis, Alibaba earned $1.40 per share, down 10% year-over-year. Revenue increased slightly 1% to $30.7 billion.
Alibaba also announced a two-part dividend that includes an annual cash dividend of $1 per American Depositary Share (ADS) and a “one-time extraordinary cash dividend” of 66 cents per ADS. The company said the total dividend will cost $4 billion.
BABA stock soared sharply on Feb. 6 after the company reported fiscal third-quarter revenue of $36.7 billion, up 2% from the prior-year quarter and slightly above the consensus of $36. .16 billion. However, adjusted profit fell 4% to $2.67 per share.
Investors also liked the fact that Alibaba added $25 billion to its share buyback program through March 2027.
Three months earlier, Alibaba shares plunged in mid-November despite reporting an 18% rise in quarterly profits and a 6% rise in revenue.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
