Latest news with #BABA
Yahoo
6 days ago
- Business
- Yahoo
Alibaba Group Holdings (BABA) Fell on Imposing ~50% Tariff on Chinese goods
Patient Capital Management, a value investing firm, released its 'Patient Capital Opportunity Equity Strategy' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy generated a total return of 15.3% net of fees in the quarter compared to the strategy's unmanaged benchmark, the S&P 500 Index's 10.9% return. According to a three-factor performance attribution model, the selection effect contributed positively to the portfolio's performance, which was partially offset by allocation and interaction effects. In addition, you can check the fund's top 5 holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach. The one-month return of Alibaba Group Holding Limited (NYSE:BABA) was 3.80%, and its shares gained 55.84% of their value over the last 52 weeks. On July 17, 2025, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $117.30 per share, with a market capitalization of $279.874 billion. Patient Capital Opportunity Equity Strategy stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2025 investor letter: "Alibaba Group Holding Limited (NYSE:BABA) sold off early in the quarter following President Trump's 'Liberation Day' tariff announcement, which imposed ~50% tariffs on Chinese goods. As the US and China moved toward tentative agreements, the stock began to recover. Fundamentally, we continue to see an attractive setup. Alibaba is benefiting from accelerating AI initiatives, renewed momentum in its Tmall platform, and rapid growth in instant shopping and local services. These trends support a broader turnaround in core commerce and digital services. Despite these tailwinds, the company trades at just 11.2x earnings, well below historical averages, and continues to return capital to shareholders through a 1% dividend yield and a robust buyback program. We believe Alibaba remains significantly undervalued relative to its sum-of-the-parts, and see meaningful upside as fundamentals stabilize and sentiment improves." An e-commerce platform displaying a wide range of products to customers online. Alibaba Group Holding Limited (NYSE:BABA) is in 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 125 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the first quarter, which was 107 in the previous quarter. While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Alibaba Group Holding Limited (NYSE:BABA) and shared the list of top e-commerce stocks with long-term potential. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
Could Alibaba Stock Be on the Rise? Here's What Experts Say
Alibaba Group (BABA) is the owner of the largest e-commerce and cloud computing company (Alien) in China and offers various cloud-based products and services, including networking, security, storage and artificial intelligence (AI) solutions. See Next: Trending Now: However, U.S. investors are wondering if the stock is on the rise or headed for another downfall. GoBankingRates tapped the expertise of stock market and finance experts to provide insight — below is what they said. Assessing Stock Movement To understand Alibaba's stock movement, you need to evaluate its diverse products and how global trade influences them, said Adam Garcia, founder and CEO of an investing website that empowers investors about stock trading, particularly in volatile markets. 'While e-commerce growth is steady, cloud computing is expanding quickly, impacting their overall stock value; tariffs can constrain Alibaba's international trade but may encourage a stronger domestic focus and innovative strategies to boost their global positioning,' he added. Read Next: Stock Growth vs. Tariff Concerns With an expansive e-commerce platform and growing cloud computing services that show potential, these sectors contribute positively to its stock potential, however, tariffs create hurdles that can restrict importing capabilities and impact the company's trading value, said Edward Piazza, president of Titan Funding. 'The interplay of Alibaba's innovative product offerings and the international tariff environment is critical,' Piazza added. It might propel growth since e-commerce attracts customers globally, but tariffs on imports could stunt some sales.' Impact of Artificial Intelligence on Alibaba Stock As artificial intelligence shapes global investing, geopolitical tensions can cool investor sentiment. 'Alibaba's share price has swung sharply this year and a wave of optimism around artificial intelligence agreements carried it higher, but tariff headlines sent a chill through the market and pulled the price back,' said Kevin Marshall, certified public accountant (CPA). 'Even after that setback, the stock still sits well above the lows of last year, which tells me that many investors trust the underlying business more than the latest political headline. Domestic E-commerce Fuels Growth Domestic e-commerce remains the anchor, Marshall said. 'Sales growth looks modest on paper but matters because the base is already massive,' he said. 'Small gains here translate into a steady stream of cash that funds faster deliveries, better search tools and deeper discounts for loyal shoppers.' These improvements keep customers from drifting to newer platforms and loyal customers 'strengthen the moat' in the core marketplace, Marshall said. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Warren Buffett: 10 Things Poor People Waste Money On How Far $750K Plus Social Security Goes in Retirement in Every US Region This article originally appeared on Could Alibaba Stock Be on the Rise? Here's What Experts Say Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-07-2025
- Business
- Yahoo
Is the Stock Market About to Explode Higher Again? The V-Shaped Rally That Could Spark a Bull Run
The stock market's 20%+ rebound in 55 days matches two of the biggest bull markets in history. Here's what traders need to know — and how to track it using Barchart tools. In April 2009 and again in April 2020, the S&P 500 Index ($SPX) surged more than 20% in just 55 trading days, sparking two of the most powerful bull markets over the last 50 years. How to Buy Tesla for a 13% Discount, or Achieve a 26% Annual Return Alibaba Stock is Well Off Its Highs - What is the Best Way to Play BABA? Generate Income on MSTR Without Owning The Stock (Yet) Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Now here we are again, in 2025. And guess what? The same V-shaped recovery pattern has reappeared, starting in April. The question for traders isn't 'What just happened?' It's 'What happens next?' In both 2009 and 2020, a sharp bounce off bear market lows created what analysts call a 'V-shaped' recovery. Not only did the market rally hard — it continued to grind higher for years, setting new all-time highs and delivering outsized gains for early buyers. Now in 2025, the market has once again crossed that 20% recovery threshold, matching the structure and timing of those previous turning points. Could this be the start of the next great bull market? While history offers clues, it doesn't guarantee results. So how do you navigate what could be a massive opportunity — or a bull trap in disguise? Use indicators that track real momentum and sentiment, like: Golden Cross Signals – When the 50-day moving average crosses above the 200-day. A classic bullish trend confirmation. Relative Strength Index (RSI) – To confirm overbought/oversold levels and momentum strength. Put/Call Open Interest Ratios – To gauge bullish vs. bearish sentiment in the options market. Here's how to stay one step ahead using Barchart's suite of pro-grade tools: Grid Chart Tool → Compare SPY performance from 2009, 2020, and 2025 to spot the pattern for yourself. Golden Cross Signals (Moving Average Crossover) → Use Barchart's MA Crossover indicator to track 50/200-day crossovers. Put/Call Ratio Page → View sentiment shifts and options activity for volume and open interest. RSI Screeners → Quickly scan for stocks entering overbought or oversold territory. While momentum may be building, smart traders wait for confirmation. Keep your eyes on sentiment data, moving average slopes, and options flow to gauge whether bulls are in control — or if a reversal is brewing. The Put/Call Open Interest Ratio is still relatively low compared to historic levels — which could mean the market has more room to run before the bears start piling in. Watch our Instagram reel here for a quick breakdown of the 2009, 2020, and 2025 rally patterns — and the tools you can use to track this next potential bull market. Put/Call Ratio Golden Cross Screener RSI Screener Save Your Watchlists and Set Trade Alerts with Barchart On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
14-07-2025
- Business
- Yahoo
Alibaba Stock is Well Off Its Highs - What is the Best Way to Play BABA?
Alibaba Group Holdings (BABA) ADRs are off their May $134 peak as Trump's tariff pressure is on again. Analysts have lowered EPS forecasts and price targets as well. Does that make BABA a buy? Maybe, but one attractive income play here is to short deep out-of-the-money (OTM) puts. BABA is at $108.45 per share, well below its recent May 14 peak of $134.05. Could it fall below $100? Maybe, but the put options at that strike price look particularly attractive. Shopify Stock is a Bargain - How to Make a 3.2% One-Month Yield with SHOP Option Volatility And Earnings Report For July 14 - 18 Generate Income on MSTR Without Owning The Stock (Yet) Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Before looking at that, let's review the stock's valuation. Sell-side analysts now project $9.20 in earnings per share (EPS) for the year ending March 31, 2025. That is down from $10.24 EPS, as I pointed out in my May 12 Barchart article. That could account for a big portion of the stock's weakness in the past 2 months. Nevertheless, it means BABA is on a very low price/earnings multiple (P/E) of just 11.8x. That is well below its historical average. Let's compute that and set a price target. The next 12-month (NTM) EPS forecast is $9.96, including the analysts' 2026 EPS forecast of $10.71. This can be multiplied by the stock's historical P/E multiple to set a price target. For example, Morningstar reports that its historical forward P/E multiple over the last 5 years has been 11.82x. Seeking Alpha says it's been 14.6x. So, let's use an average 13.2x multiple: $9.96 x 13.2 = $131.47 target price Upside = +21.2% But that assumes that BABA stock will rise to over 13x earnings. That would have to be after any tariff issues between the U.S. and China have been resolved. To be conservative, let's use a lower 11.82x multiple: $9.96 x 11.82 = $117.73 target price Upside = +8.6% The bottom line is that even using a lower historical multiple, BABA stock looks cheap here. Yahoo! Finance shows that the average price target is $162.17, and Stock Analysis says that the 14 analysts' average is $152.16. These are substantially higher than today's price. The mean survey price at Barchart is $161.53 per share, and AnaChart's average of 22 analysts is $149.21. That means the lowest analyst survey price target is still +37.6% over today's price. As a result, using both our $117.73 P/E-based price target and the lowest analyst survey of $149.21 gives an average of $133.47: Upside: $133.47 / $108.45 = 1.23 -1= +23% upside So, BABA stock is well over 20% undervalued here. One way to play this, to set an even lower buy-in price and to get paid extra income while waiting, is to sell short out-of-the-money (OTM) put options. For example, look at the Aug. 22 expiry period, 39 days from now, just over one month and a week from now. It shows that the $100 strike price put option, which is 7.7% below today's trading price, has an attractive midpoint put option premium of $1.91. That means an investor who enters an order to 'Sell to Open' this strike price can make an immediate yield of 1.91% (i.e., $1.91/$100.00). So, as long as BABA stays over $100.00 for the next month or so, an investor makes a clean 1.9% yield without having to buy 100 shares at $100.00 (i.e., collateral of $10,000 is required). But even if the account is assigned to buy BABA at $100 (if it falls to $100 or lower), the investor's breakeven is lower: $100-$1.91 received = $98.09 breakeven That is 9.5% lower than today's trading price. So, this provides good downside protection, sets an attractive buy-in point, and provides a good monthly yield. For example, if the investor can repeat this 1.92% short-put yield every 39 days, the annualized expected return is 17.28% (i.e., 9 x 1.92%). Keep in mind that the delta ratio, which implies the probability that BABA will fall to $100 in the next 39 days, is low at just 23%. This is based on its historical trading variance. In addition, the upside, if the account is assigned, is high: $133.47 / $98.09 = 1.36 -1 = +36% upside The bottom line is that BABA stock looks cheap here, and one way to play it is to short 39 DTE puts at the $100 strike price for a 1.9% yield. On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
Why Wall Street Is Betting on Alibaba Stock Gaining 70% From Here
After a strong start to 2025 that saw Alibaba (BABA) stock climb to a 52-week high of $148.43 in mid-March, shares of the Chinese tech giant have since faced a notable pullback. BABA stock has declined more than 28% from that peak. However, per analysts' ratings and price targets, the recent decline in BABA stock is a buying opportunity rather than a warning sign. Despite the recent dip, analysts continue to see significant upside in Alibaba stock. The company's fundamentals remain robust, supported by steady performance in its core digital commerce operations. Moreover, Alibaba's strategic push into artificial intelligence (AI) and cloud computing is seen as a powerful catalyst for long-term growth. Circle Stock Warning: CRCL Could Fall More Than 50% From Here Dear Tesla Stock Fans, Mark Your Calendars for July 15 Up to 7.5% Yield and a 'Strong Buy' Rating? These 3 Dividend Stocks Check Every Box. Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Wall Street's confidence in Alibaba is evident in the consensus among analysts. A large majority remains positive on the stock, and the highest price target currently stands at $180, implying an impressive 69% upside from current levels. Against this backdrop, let's explore the key drivers behind analysts' confidence in this Chinese e-commerce powerhouse and what factors could help push BABA stock higher. As digital transformation sweeps across global markets, Alibaba's investments in cloud computing, artificial intelligence (AI), and core e-commerce platforms position it well to deliver significant growth by capitalizing on the growing demand across these key sectors. Further, Alibaba's diversified business model, strong execution, and innovation are setting the stage for solid growth, which could push its share price higher. The group's e-commerce arms, Taobao and Tmall, continue to show strong user engagement, supported by improving monetization strategies and growing consumer demand. During the most recent quarter, the Taobao and Tmall Group (TTG) reported 12% year-over-year growth in customer management revenue. Alibaba's enhanced marketing tools, like Quanzhantui, are driving increased merchant participation, contributing to higher take rates and improved marketing efficiency. User acquisition efforts are also paying off, with 88VIP memberships surpassing 50 million. Meanwhile, Alibaba Cloud is emerging as a significant growth engine. In the latest quarter, revenue from cloud services rose 18%, with continued acceleration in public cloud revenue. Moreover, its AI-related product lines maintained triple-digit year-over-year growth for the seventh consecutive quarter. For the full fiscal year, cloud revenue grew in double digits, and management anticipates that AI will be a key catalyst for acceleration in its growth rate. Despite global supply chain uncertainties in AI hardware, demand for Alibaba's cloud solutions remains resilient, positioning it well to deliver solid growth in the coming quarters. Alibaba is ramping up investment in advanced technologies and infrastructure to maintain global leadership in the AI and Cloud space. As these capabilities mature, they are expected to provide recurring, high-margin revenue streams and reinforce Alibaba's position in the enterprise technology landscape. The company's cross-border e-commerce business is also contributing meaningfully, with Alibaba International Digital Commerce (AIDC) growing 22% last quarter. This performance reflects both strong global demand and operational improvements. Alibaba also monetized its non-core financial assets, enhancing its balance sheet and providing capital flexibility to support strategic investments and shareholder returns. Despite its multiple growth catalysts, Alibaba stock remains undervalued. Trading at just 11.1 times forward earnings, the stock is priced at a discount to its earnings growth potential. Analysts project 13.7% bottom-line growth in fiscal year 2026 and 18.5% for 2027, highlighting a disconnect between Alibaba's market valuation and its growth trajectory. While Alibaba stock has witnessed a pullback, Wall Street's conviction in BABA remains firm. Analysts' 'Strong Buy' consensus rating suggests that the dip is a compelling entry point into a fundamentally strong company poised for long-term growth. With a diversified business model, accelerating momentum in AI and cloud computing, and solid performance across its core and international commerce platforms, Alibaba is well-positioned to deliver strong growth. Moreover, Alibaba stock's undervaluation strengthens the bullish case. With analysts projecting about 69% upside potential, BABA is a discounted growth powerhouse that could reward patient investors. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
