Alibaba Group Holdings is a multinational company founded in China. This chinese firm was established by Jack Ma in 1999. He is one of the most famous businessmen in the world. Alibaba is famous across the globe as one of the largest retailing companies. Its BABA share also made its position on the 9th highest global valuation in the year 2022.
Alibaba Group’s shares have declined from higher levels due to late COVID-19 restrictions and the slow performance of its subsidiaries. One of the subsidiaries plans to bring an IPO in the Hong Kong market. Cainiao is planning to raise $1.0B from its IPO.
The current beta of the BABA share is 0.88, which makes it less volatile as compared to the whole market. The company has an essential EPS of 4.64 USD, which defines the amount it makes on each share. The BABA stock also got a price-to-earnings ratio of 18.29. It shows investors may buy this share at higher rates.
Alibaba Group share has an average trading volume of 22.469M. The company also does not pay dividends and follows an operating margin of 18.15%. The ROA of the company is also neutral, following a P/B ratio of 1.63.
Alibaba Group Holdings Stock Performance Analysis
Alibaba Group Holdings made a gross profit of $44.72B in the year ending 2022. It is the 35% of the revenue of the company. Despite a massive revenue of $126.70B, the company has a debt of $28.46B. However, the company’s current ratio is 1.92. It suggests that the company can repay its debt.
Technical Overview of BABA Stock
Due to the huge decline in price in recent times, the technicals like MA’s and oscillators have become negative. However, the company has sustainable fundamentals. By following this the experts are recommending a buy on the stock.
BABA Share Technical Analysis
The share price of BABA is trading in a range on the weekly timeframe. The price has also broken down below the rising wedge pattern on the daily timeframe. That indicates weakness in the price in the shorter timeframe.
As the price has declined from the higher levels, the 50-day and the 200-day EMA are trading in a death cross. It displays bearishness in the market.
The RSI for the BABA share is trading in a zone. It is acting uncertain and volatile. It makes the price uncertain.
Conclusion
The BABA stock price has declined to lower levels due to certain market factors. The market structure is also harmful to the stock. The RSI is acting uncertain, while the EMA is also bearish on the charts.
Therefore, we must wait for the price to break below or above the range. Till then, the share price looks negative and can decline to the lower band of the zone.
Technical Levels
- Support levels for the BABA share are – $50.00 and $60.00
- Resistance levels for the BABA share are – $138.00 and $180.00
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/09/23/cainiao-raising-a-billion-in-hong-kong-with-ipo-baba-skyrocket/