That helped stanch the decline of its stock due to the recent delisting fears. Therefore, we reiterate our Buy rating and urge investors to capitalize on the recent weakness to add exposure. This new crop of tech companies are the ones to watch for the next decade. China has for years rejected US audits of its firms, citing https://dotbig.com/ national security concerns. It requires companies that are traded overseas to hold their audit papers in mainland China, where they cannot be examined by foreign agencies. The SEC has the power to kick companies off Wall Street if they fail to allow US watchdogs to inspect their financial audits for three straight years.
- Therefore, we urge investors to add more positions to capitalize on its recent downside volatility.
- Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
- Our team is committed to bringing more clarity to investors in their investment decisions.
- The company’s stock price has declined almost 40% over the past year.
Our discussion mainly focuses on a short- to medium-term thesis. While we hold stocks for the long-term, we also use appropriate opportunities to benefit from short- BABA stock price today to medium-term swings, leveraging long or short set-ups. I’m Jere Wang, the lead writer and founder of JR Research and Ultimate Growth Investing Marketplace service.
Who Are Alibaba Group’s Major Shareholders?
SEC and China relating to the auditing compliance of Chinese companies listed on U.S. exchanges. https://dotbig.com/markets/stocks/BABA/ rose in premarket action Thursday, after the China e-commerce giant reported quarterly results that beat estimates. The post Alibaba Quarterly Results Beat Estimates As It Sees Signs Of Re… However, we believe that Alibaba will unlikely post the massive revenue growth it delivered in the pre-crackdown years. Therefore, its renewed focus on driving higher-quality profitability improvement will be critical to sustaining its valuation moving ahead.
In 2007, the company went public on the Hong Kong stock exchange. Coupled with an improving regulatory climate, cloud computing’s below-trend growth should also normalize, supported by the recovery of China’s consumer sentiments in the medium-term. If that worst-case https://www.ig.com/en/forex/what-is-forex-and-how-does-it-work scenario happens, Alibaba would likely allow its U.S. investors to trade their ADR shares for Hong Kong shares. However, investors would need to be using a brokerage that has access to the Hong Kong Stock Exchange, and pay some fees for the trade.
Company Summary
Top sectors were healthcare +2.01%, utilities +1.81% and staples +1.51% while energy and discretionary were down today -0.97% and -0.52%. Top subsectors were healthcare-related such as contract research organizations, semis, and Tik Tok-related companies, while dotbig review defense, military, and rare earth sectors were down. Northbound Stock Connect volumes were light as foreign investors sold -$474mm of Mainland stocks. Chinese Treasury bonds were flat, CNY was off slightly versus the US $ -0.03%, and copper was off -1.05%.
Let’s review Alibaba’s challenges and the possible outcomes of the delisting drama, and see if its stock can attract the bulls again. China’s Alibaba Group Holding Ltd, on Thursday beat market expectations for revenue in the quarter ending in late June, even though revenue growth was flat for the first time due to the impact of the Sh…
That’s also why its stock still trades at just 10 times forward earnings. The Hang Seng and Hang Seng Tech dotbig review gained +2.06% and +3.18% on volume, down -6.89% from yesterday, which is 65% of the 1-year average.
Alibaba Group Holding 1q Eps $1 27 >baba
Learn about financial terms, types of investments, trading strategies and more. Alibaba Group is scheduled to release its next quarterly earnings announcement on Thursday, November 17th 2022. Cities Where Stocks Yield 26% a YearWhat’s the highest-yielding stock you’ve ever owned? The dividends for these stocks have risen so fast over the years that they’re now yielding us an average of 26%!
Services
The Motley Fool has positions in and recommends Baidu and JD.com. Under the HFCAA, Chinese companies that don’t comply with those tighter auditing standards for three consecutive years will be delisted from all U.S. exchanges, including over-the-counter ones. China’s Securities Regulatory Commission subsequently https://dotbig.com/markets/stocks/BABA/ held talks with the SEC to prevent those delistings, but those discussions have been fruitless thus far. Dominates China, claiming 15% of the entire global population as customers. But China’s political risks can impact companies, making Alibaba a minefield of red flags that investors need to navigate.
Key Earnings Data
It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. Salesforce is repositioning itself in China as it looks to expand the reach of its customer relationship management software in the country. The company is “accelerating” its strategic partnership with …
Alibaba’s smooth transition of listing status could also «set the path» for many more Chinese ADRs to pursue a similar switch, Citi analysts said separately. On Monday, Alibaba said it would monitor market developments and «strive to maintain its listing status on both the NYSE and the Hong Kong Stock Exchange.» Investors have been concerned about the tech giant for years now. In late 2020, Alibaba was caught up in a sweeping crackdown in China on the country’s booming technology sector.
As a result, it has continued a marked downtrend in its cloud computing growth, as Alibaba posted a revenue increase of just 10% YoY in FQ1. Alibaba’s solid FQ1 earnings release demonstrated its execution prowess in recovering its profitability, given the success of its cost optimization strategies. U.S.-listed shares of the Chinese e-commerce giant have fallen in half over the past year, though analysts saw encouraging trends in latest Forex earnings report that could help change the sour narrative. Meanwhile, China’s broader economic slowdown caused Alibaba’s enterprise customers to curb their spending on cloud services. As China’s largest e-commerce and cloud platform company, Alibaba seemed like a solid long-term investment. However, China’s antitrust regulators cracked down on Alibaba’s e-commerce business and slapped it with a record $2.8 billion fine in April 2021.
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