“That said, valuation is discounting many of these issues and we note net cash stands at about 30% of BABA’s market cap,” he wrote. BABA stock crashed another 8% on Nov. 10 after Chinese regulators announced new draft antimonopoly rules for China online platforms like Alibaba and JD.com, among others. In early November 2020, Chinese authorities suspended the $34.5 billion Ant Group IPO in Shanghai and Hong Kong. The decision to suspend the IPO came after Shanghai exchange officials said the exchange would halt the listing due to the company’s inability to fulfill conditions amid changes in the regulatory environment. Alibaba stock rallied sharply in late August last year on reports that Beijing and U.S. regulators were close to an audit-inspection deal.
- The Chinese central bank held rates unchanged, an expected move that nevertheless disappointed investors.
- It’s worth noting that Munger’s hands-off approach wasn’t a winner across the board.
- Remarkably, Daily Journal held the exact same amount of Bank of America, Wells Fargo, and US Bancorp shares a decade later, on December 30 last year.
But Zomato has never earned a profit and therefore isn’t currently contributing to Alibaba’s bottom line. Management has previously blamed “U.S. restrictions on export of advanced computing chips” for its inability to make sufficient progress in quantum computing and artificial intelligence to justify the expense. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. In April 2020, China regulators fined Alibaba $2.8 billion after an antimonopoly probe.
The Ernie AI news alone leaves me quite bullish on a stock despite recent news of the Evergrande liquidation. With shares approaching a long-term level of support (in the mid-$60 range), I’m inclined to be bullish, but I do acknowledge that a stomach of steel will be needed to cope with the profound share price turbulence. That said, with Alibaba ex-CEO Jack Ma recently picking up $50 million in Hong Kong-traded shares, it’s somewhat easier to be in the bull camp. Alibaba Group Holding Limited BABA led a rebound in Hong Kong stocks and ended a two-day decline, as the Federal Reserve’s openness to policy easing sparked optimism among traders who postponed their betting to May.
Alibaba Group (BABA) Stock Price, News & Analysis
Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Alibaba Group Holding Limited is an eCommerce and Internet technology giant headquartered in the People’s Republic of China. Its core platform, Alibaba.com, is the world’s 3rd largest eCommerce platform by sales. The company also aids other businesses with a vast array of digital and logistical solutions with a reach that spans the globe. Alibaba’s revenue only grew 2% in fiscal 2023 (which ended last March) as its core e-commerce and cloud businesses stalled out. But in the first six months of its fiscal 2024, revenue rose 11% year over year, and analysts anticipate 9% growth for the full year.
The value of Daily Journal’s Wells Fargo and US Bancorp positions rose by less than 10% in a decade, while the S&P 500 surged by over 150% in the same timeframe. The company’s Bank of America stake did better, rising by almost 120% in that period. In any case, it’s hard to ignore the hype behind PDD’s Temu app, which has pretty much gone viral in the U.S. Indeed, consumer appetite for incredibly low-cost discretionary goods could stay strong as inflation and macro headwinds continue to impair our ability to spend on nice-to-have goods.
Recent Earnings
Alibaba stock gapped above its 50-day line on Nov. 15 and closed near its session high on a strong day overall for Chinese stocks. Normally, it would’ve been a buy signal but BABA’s 200-day moving average at the time around 89.50 was a potential resistance level to watch. Alibaba stock jumped on June 17 but pared early gains after Reuters reported that China’s central bank accepted Ant Group’s application to set up a financial holding company.
Even so, Daily Journal’s filings underscore Munger’s commitment to making concentrated bets, buying for the long term and only at a compelling price, rarely selling, and resisting the urge to fiddle or panic. He barely touched its handful of US holdings for at least a decade, adding just one name, exiting another, and leaving three of its positions fully intact. The late Charlie Munger grew Daily Journal’s stock portfolio from nothing to $300 million within 15 years. The newspaper publisher just filed its final portfolio update from the legendary investor’s time in charge, and it underlines Munger’s exceptional patience, discipline, and conviction.
Hedge Fund Favorites: 7 Stocks the Big Money Is Loving Now
Alibaba stock soared above its 200-day moving average on July 7 after Chinese regulators fined Alibaba’s financial arm, Ant Group, just under $1 billion. According to an SEC filing, Tsai purchased $151 million in Alibaba stock in the fourth quarter via his Blue Pool Management family fund. Ma stepped down as the company’s chairman in 2019 and remains a big shareholder. Valuations in the Chinese xcritical black review stock market are collapsing in the new year, heaping more pressure on shares of some of the most respectable companies trading in the world’s second-largest economy. Alibaba Group saw a increase in short interest in the month of January. As of January 15th, there was short interest totaling 42,270,000 shares, an increase of 20.4% from the December 31st total of 35,100,000 shares.
Additionally, geopolitical risks are always something to consider before buying any seemingly cheap Chinese stock with both hands. On the date of publication, Tyrik Torres did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Alibaba referred CNBC to Ma’s foundation, which did not return a request for comment.
Alibaba hosts conference call for investors
Alibaba stock is a Strong Buy, according to analysts, with 18 Buys and two Holds assigned in the past three months. The average BABA stock price target of $118.60 implies 61.2% upside potential. Alibaba announced in March 2023 that it would spin off its cloud business as part of a broader corporate reorganization. Months later, it scrapped those plans, citing U.S. semiconductor export controls. Around the same time the spinoff was canceled, Ma in a regulatory filing said that he would sell 10 million shares worth $870 million. BABA reported adjusted profit of $1.56 a share, up 24% year over year, with revenue down 6% to $30.3 billion.
173 employees have rated Alibaba Group Chief Executive Officer Daniel Yong Zhang on Glassdoor.com. Daniel Yong Zhang has an approval rating of 87% among the company’s employees. Looking to avoid the hassle of mudslinging, volatility, and uncertainty? Munger’s record appears to have been saved by an early bet on Chinese EV maker BYD. The wager likely made up the lion’s share of Daily Journal’s $138 million in unrealized gains on September 30, and allowed it to realize a 15-fold return on a $3.3 million wager in late 2021. Of course, the “value” to be had in the stock may be nothing more than a hallucination if stimulus can’t jolt China’s pained economy.
Bad news could be good news for Alibaba stock
The Chinese holiday is now the largest single day for global online sales each year, and brings in significant revenues for the company. The initial public offering was the largest ever offering at the time, with the company’s market cap reaching $231 billion. He bet on Alibaba at the start of 2021, quadrupled his wager by the end of the year, then halved it the next quarter after souring on the Chinese e-commerce titan and deciding he’d made a mistake.
The recent chip restrictions create “uncertainty about the trajectory of BABA’s AI prospects, which will prevent a spinoff of the business unit,” he added. But U.S.-China relations could make those investments more challenging. In October, the Biden administration announced https://traderoom.info/ tighter restrictions on the export of artificial intelligence chips and manufacturing equipment to China. Total revenue from the company’s Taobao and Tmall online marketplace climbed 4% year over year in local currency, totaling $13.4 billion.