Alibaba stock: buy or sell

BABA stock price: $258.62 -0.53% At close on Jan 22nd, 2021

Updated on:
Jan 25th, 2021

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Alibaba stock brief

  • Alibaba stock just moved -0.53% to close at $258.62 on the stock market last Friday, and broke a streak of 5 sessions in green.
  • Looking at the chart, price is drawing an scaled downtrend since last October with lower tops and lower bottoms. this downtrend marked a -19.01% loss(from its highs at $319.32).
  • Truist published a neutral rating for Alibaba last Friday, with a target of $326.00
  • Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People's Republic of China and internationally.

Should I buy Alibaba stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $BABA stock a buy?

In the current situation of Alibaba there is not any eligible buy setup. This doesn't mean $BABA will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Alibaba stock?

When you are a novel trader and you own a stock with some profit, it's really difficult to decide the best moment to sell and get your profits. Just as when we have to buy shares, determining when is appropiate to sell is not a whimsical decision, and we must use our own trading style. Our trading system selects very simple setups to guide us on when is the best time to sell a stock. Be aware that these setups are not intended for shorting $BABA stock

As a golden rule, you should not keep a trade that produces greater losses than those expected upon purchase. When to sell shares should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Alibaba stock?

Currently, Alibaba stock doesn't match any of our preferred sell setups, so if you own Alibaba shares and your operation is in profit probably is not time to sell now

Alibaba ratings

In the last 30 days, 5 analyst ratings were published for Alibaba. General sentiment is bullish, with 4 out of 5 publishing positive forecasts

Alibaba analysts' ratings - Last 30 days
Brokerage firmRating
Jan 8th, 2021
Mizuho Strong buy
Jan 11th, 2021
Macquarie Buy
Jan 14th, 2021
Nomura Strong buy
Jan 15th, 2021
KeyCorp Buy
Jan 22nd, 2021
Truist Neutral

Alibaba stock analysis

Alibaba accumulates a selloff of -19.01% since its latest peak last October at $319.32. Like in all downtrends, the stock oscillates drawing lower tops and bottoms. In this case, we have seen 3 consecutive lower tops.

SMAs overview

BABA stock SMAs chart

Supports and resistances

The current resistances are:

  • R1: $264.56 (2.30% above)
  • R2: $268.00 (3.63% above)
  • R3: $269.00 (4.01% above)
  • The current supports are:

  • S1: $252.55 (-2.35% below)
  • S2: $240.74 (-6.91% below)
  • S3: $231.14 (-10.63% below)
  • Bollinger bands

    Since the price surpassed the upper band last Wednesday, the price has been corrected downwards by 3.86%. The price is moving very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell signal, as price can move in these levels for many days and weeks

    BABA stock Bollinger Bands chart

    Relative strength index

    The RSI broke out the oversold line of 30 in late December after just being in the oversold zone for a single day (what can be considered a strength signal). The RSI value last Friday was 56.44. Since RSI left the oversold zone, Alibaba shares exploded a 16.31%

    BABA stock RSI chart

    Alibaba stock price history

    Alibaba went public priced at an adjusted price1 of $92.70 on Sep 2014. Since then, BABA stock surged by 178.99%, with an average of 29.83% per year. An investment of $1,000USD on Sep 2014 would worth $2,789.86 today.

    1: Adjusted price after possible price splits or reverse-splits

    BABA stock price history chart

    Price target for Alibaba stock

    Nobody knows how much a stock will be priced in the future. However, many stock price predictions are issued every day by banks, financial institutions and independent analysts.

    The following table shows the price predictions released by financial institutions in the last month. If you are a small investor you should not buy or sell based on these price targets.

    The average price target for Alibaba stock calculated from the table below is $333.20. That is a 28.84% than the last price ($258.62).

    Alibaba stock price predictions
    Brokerage firmPrice target
    Jan 8th, 2021
    Mizuho $325.00$300.00
    Jan 11th, 2021
    Macquarie $394.00$387.00
    Jan 14th, 2021
    Nomura $338.00
    Jan 15th, 2021
    KeyCorp $355.00$315.00
    Jan 22nd, 2021
    Truist $308.00$326.00

    Earnings and financials

    Last November, Alibaba ($BABA) hosted the earnings event and released the report. Alibaba reported earnings of $2.65 per share on sales of $22.8 billion. The consensus earnings estimate was $2.11 per share on revenue of $23.2 billion.

    In comparing, the EPS for the same quarter last year was $13.10, so reported EPS means a drop of -79.77%. Turnover exploded a 30.28% on an annualized basis in the , from $1.2T to $1.6T last quarter.

    Alibaba ($BABA) is hosting the Q3 earnings call mid next February. Wall Street expects of $3.24, compared to Q2 that was $2.65.

    Alibaba competitors

    Alibaba belongs to the Consumer Cyclical sector and the Internet Retail industry, where it has industry peers.

    The following are some of Alibaba major competitors:

    Alibaba competitors
    CompanyMarket capRatingBullish ratings1
    Alibaba ($BABA) $642.2B Buy 4
    Amazon ($AMZN) $1.6T Buy 3
    eBay ($EBAY) $38.9B Neutral 0
    Overstock.com ($OSTK) $2.3B Neutral 0

    1 In the last 30 days.

    Alibaba performance

    To better understand Alibaba performance you must compare its gains with other related stocks in same sector or industry.. For Alibaba, the benchmark is made against Amazon, eBay and Overstock.com.

    BABA performance compared
    Company1m3m6m
    Alibaba ($BABA) 0.30% -17.00% 5.60%
    Amazon ($AMZN) 2.80% 3.20% 12.40%
    eBay ($EBAY) 9.20% 7.70% 3.20%
    Overstock.com ($OSTK) 6.30% -0.40% 32.20%

    Disclaimer:
    The thoughts given in this article are personal and not recommendations for you to buy or sell shares. The author of this document does not have any knowledge of the specific scenarios of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for educative purposes only

    Alibaba summary

    Friday, January 22nd, 2021
    Open$256.8
    Close$258.62
    Day range$255.5 - $260.33
    Previous close$260
    Session gain-0.53%
    Average true range$13.93
    50d mov avg$253.91
    100d mov avg$272.67
    200d mov avg$250.77
    Earnings dateFebruary 11th, 2021

    Frequently asked questions

    What is Alibaba stock symbol?

    Alibaba Group Holding Limited is a public company trading in the US stock market with the BABA symbol

    Is Alibaba stock a buy or sell?

    Alibaba received 5 ratings in the last 30 days: 4 bullish, 0 bearish and 1 neutral.

    Will BABA go up?

    Alibaba had different price predictions posted by market analysts in the last 30 days setting the target price to $333.20. That is a 28.84% than the last price ($258.62).