Alibaba: It’s time to buy. For NYSE: BABA By NickTheGreatStockTrader
How Alibaba is Affected: This “crackdown” is mainly focused on large technology companies and private lessons. Alibaba has previously been fined $ 2.8 billion for abusing its dominant position in the market, which, along with the general fear of investing in China’s tech sector felt by foreign investors, has led to a fall in the share price of more than 30% in 2021.
Fundamental analysis: Alibaba can be considered a value game for the first time in its history, with a PB ratio of 2.84 and a PE ratio of 19.521. Year-over-year revenue growth (YoY) is 40 0.2%, 6.4% better than related companies, and net income rose a little more than 2% again despite a slowdown in the Chinese economy as a whole. With a current ratio of 1.80, Alibaba can pay off any short-term liabilities it may have, and with a debt-to-equity (Debt / Eq) ratio of 0.15, it is equipped to handle all payments from long term debt. Overall, the fundamental picture is good.
Technical analysis: There is a large megaphone model which has developed since September 2015. Due to the strong reduction Alibaba is trading at. My recommended entry is $ 138. My first course objective is the previous one ATH , $ 300, which I plan to hit by April 2024. My second price target is $ 400, which should be hit in March 2025. I hit these price targets by looking at past rallies, the comeback Alibaba annual (until October 2020) and various fundamental formulas for guessing future returns.sentiment, Alibaba has a high chance of falling 15% more to retest the decline megaphone. From there it will most likely consolidate between $ 140 and $ 190 until foreign investors realize how much a
Personal opinion: Fundamentally, Alibaba is well positioned to maintain its dominant position in the Chinese e-commerce market and weather the five-year regulatory storm it faces. From a technical point of view, it will go down further in the short term, but within five years I can see gains of over 100%. Diamond hands to you all.
*** I am back from my second hiatus of several months. Will post more ideas soon. As always, this is my personal opinion and not actual financial advice, although you can follow it nonetheless. ***