The average one-year price target on the street is approximately $138, roughly 95% higher than Alibaba’s current share price. The minimal one-year price target is around $71, still higher than Alibaba’s November 12th closing price of $70.77. The higher-end one-year price target is about $218, roughly 207% higher than the company’s recent stock price.

  • A month ago, Strong Buy made up 86.67%, while Buy represented 6.67%.
  • Just don’t get so caught up in the past that you forget stocks reflect a company’s likely future.
  • This segment includes a suite of cloud-based services such as Alibaba Pictures and content platforms that provide streaming media.
  • Based on our research, we believe these estimate revisions are directly related to near-team stock moves.
  • A single quarter of good performance is probably too early to declare victory.

A $520 price target by 2030 equates to approximately 650% stock appreciation, making Alibaba a top candidate for a long-term investment. On one hand, there are early signs that Alibaba is heading toward a recovery after it reported a respectable growth in revenue in the latest quarter. Alibaba’s result for the fiscal year ended March 31, 2023 reflected these challenges when revenue grew by just 2%. Worse, its crown jewel, the Chinese e-commerce business, reported a 1% decline in revenue for that year.

Alibaba continues plans for value unlock as it seeks spinoff of logistics unit

Notably, all major business divisions (except the cloud division) grew revenue by double digits. Even the flagship Chinese e-commerce division reported a 12% increase in revenue. Alibaba (BABA -0.24%), once a Chinese growth powerhouse, faced a turbulent period as revenue growth fell to an all-time low in the  fiscal year ending March 31, 2023. As its financial performance deteriorated, Alibaba’s stock price fell to lows unseen in recent years. Investors should also note any recent changes to analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends.

A single quarter of good performance is probably too early to declare victory. Fortunately, with the strategic restructuring plan, Alibaba has a clear plan for a full recovery. Our experts picked 7 Zacks Rank overvalued stocks #1 Strong Buy stocks with the best chance to skyrocket within the next days. Alibaba, holding a 70% stake in Cainiao, is spinning off the logistics network as part of a broader restructuring initiative.

Reducing drastic government-imposed measures benefits the Chinese economy how to open a brokerage account and should help improve Alibaba’s price action as we move on.

Spate Of Hong Kong IPOs Provides Glimmer Of Hope For Chinese Investors Amid Week-Long Sell-off

An industry with a larger percentage of Zacks Rank #1’s and #2’s will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4’s and #5’s. Upgrade to MarketBeat All Access to add more stocks to your watchlist. There is increasing fatigue over lockdowns and travel limitations in the country of more than 1.4 billion people. Moreover, COVID-related constraints have significantly affected China’s economy. Therefore, it isn’t surprising that we see China’s government act by loosening quarantine constraints and other measures. The slight policy easing implies that China may continue to cut down on harsh COVID-related regulations and that the government remains highly conscious regarding the well-being of China’s economy.

This move reflects Dai’s shift of focus solely on Alibaba’s primary e-commerce operations. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. U.S.-listed shares of Chinese internet stocks were rising Friday, snapping back after two sessions of pressure. Alibaba Group Holding’s logistics arm, Cainiao Smart Logistics Network Ltd., has filed for its initial public offering in Hong Kong. Alibaba Group’s stock was trading at $88.09 at the start of the year.

Alibaba is also ranked 5th largest globally in regards to its work in AI, and it owns the world’s largest B2B, B2C, and C2C eCommerce portals. In 2022, Alibaba’s Singles Day event brought in $139 billion to set a new one-day record. Jack Ma and 17 others founded Alibaba’s online marketplace in 1999, and achieved profitability for the first time in 2001. Alibaba’s challenges in recent times have caused investors to be pessimistic about its future.

Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year. These returns cover a period from January 1, 1988 through September 4, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return.

Stock , BABA

Yahoo Finance Live anchors Seana Smith and Brad Smith report the latest financial news for September 22, 2023. Stocks were higher in early trading on Friday after experiencing a down week amid the Fed… Alibaba Group Holding Ltd. ( BABA , Financial) has been one of the most followed Chinese American depositary receipts since its initial public offering in the U.S. Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

Alibaba’s Valuation Is Ridiculous

With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook. While I’m bullish on Alibaba, various factors could derail my thesis for the company. For instance, the CCP could resume its tough stance and clamp down further on Alibaba and other Chinese tech giants.

Strong Buy and Buy respectively account for 86.67% and 6.67% of all recommendations. A month ago, Strong Buy made up 86.67%, while Buy represented 6.67%. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Alibaba reportedly told Turkey’s president it plans to invest forex trading secrets $2 billion in the country. Alibaba President Michael Evans made the remarks in a meeting with Turkish Head of State Tayyip Erdogan, Reuter… FFIE, -6.15% stock climbed 6.8% after executives at the electric-mobility ecosystems group said that several top executives, including incoming Chief Executive…

Alibaba (BABA) closed at $86.53 in the latest trading session, marking a -0.24% move from the prior day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%. In addition to this news, Chinese stocks are also rising alongside positive comments from Goldman Sachs.

Analyst Ratings

To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. BABA’s full-year Zacks Consensus Estimates are calling for earnings of $9.13 per share and revenue of $133.89 billion. These results would represent year-over-year changes of +14.99% and +4.67%, respectively. Alibaba (BABA Quick QuoteBABA – Free Report) closed at $86.53 in the latest trading session, marking a -0.24% move from the prior day. Earlier this month, he surprised the market by resigning as CEO of the cloud business – Alibaba Cloud Intelligence Business Group.

Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.68 billion, up 8.78% from the year-ago period. Prior to today’s trading, shares of the online retailer had lost 8.7% over the past month. This has lagged the Retail-Wholesale sector’s loss of 4.61% and the S&P 500’s loss of 4.45% in that time. Alibaba Group has not confirmed its next earnings publication date, but the company’s estimated earnings date is Thursday, November 16th, 2023 based off last year’s report dates. Zacks provides the average brokerage recommendation (ABR) for thousands of stocks for most of the leading investment web sties. The ABR is the calculated average of the actual recommendations (strong buy, hold, sell etc) made by the brokerage firms for a given stock.