China’s Alibaba Cloud said on Thursday it will cut prices on its cloud service products by an average of 20% in its second large-scale price adjustment programme in recent years. Alibaba Group will cut cloud bitfinex review product prices in China to boost a promising division whose sales have slowed in recent quarters amid rising competition. The scores are based on the trading styles of Value, Growth, and Momentum.
- The specialty retailer reported $18.97 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $19.12 by $0.15.
- Alibaba Group’s earnings are expected to decrease from $7.97 per share to $7.70 per share in the next year, which is a -3.39% change.
- China’s Alibaba Cloud said on Thursday it will cut prices on its cloud service products by an average of 20% in its second large-scale price adjustment programme in recent years.
- The company’s eCommerce platforms include Taobao Marketplace, Tmall, Alimama, 1688.com, Alibaba.com, Aliexpress, Lazada, Trendyol, and Daraz.
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- A higher fair value than the current market price drives investors’ interest in buying the stock, leading to its price moving higher.
It also imposed tighter rules on the sale of chip equipment to China. A day earlier, Alibaba stock reversed lower on April 11 after the company officially joined the artificial intelligence race with the launch of its own generative AI system. The company said each business will have the ability raise outside funding and even pursue an IPO. According to report, the company would likely hold on to its cloud/artificial intelligence business and its giant e-commerce operations. Alibaba stock soared above its 200-day moving average on July 7 after Chinese regulators fined Alibaba’s financial arm, Ant Group, just under $1 billion.
Sentiment was positive around Alibaba stock on August 10 as Wall Street weighed the company’s latest earnings report. Alibaba was co-founded by Jack Ma in 1999 when it became clear the Internet and digitization were the future of commerce. Mr. Ma is a billionaire investor, businessman, and philanthropist who believes in an open and free-market economy. The IPO set a record with its valuation of $25 billion and the company is now worth more than $225 billion and ranked among the 10 most valuable companies by market cap.
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The specialty retailer reported $18.97 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $19.12 by $0.15. The business earned $260.35 billion during the quarter, compared to analysts’ expectations of $260.26 billion. Alibaba Group has generated $5.42 earnings per share over the last year ($5.42 diluted earnings per share) and currently has a price-to-earnings ratio of 13.8. Earnings for Alibaba Group are expected to decrease by -3.39% in the coming year, from $7.97 to $7.70 per share. Alibaba Group has not formally confirmed its next earnings publication date, but the company’s estimated earnings date is Thursday, May 16th, 2024 based off prior year’s report dates.
Alibaba’s e-commerce platform Daraz to undertake layoffs amid cost woes
Alibaba has its hands in a number of industries, including artificial intelligence research, payments technologies, cloud computing in addition to its flagship online retail operation. Without considering a stock’s valuation, no investment decision can be efficient. In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects. Over the last four quarters, Alibaba surpassed consensus EPS estimates three times.
Click here to see the values of some of the valuation metrics that have driven this grade. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. 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. Plus, BABA info will be updated daily in your free Zacks.com Portfolio Tracker. Follow Ken Shreve on Twitter at @IBD_KShreve for more market insight and analysis right now.
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Securities and Exchange Commission added Alibaba to a list of Chinese firms at risk of being delisted for not opening their books to U.S. accounting regulators. BABA stock soared 14% on March 28 on reports the company plans to separate into six separate units. MarketSmith will be performing technical updates on March 2nd from 10pm to March 3rd at 10PM ET on the desktop and mobile platforms. You may experience intermittent downtime, slowness and limited functions during this time.
16 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for Alibaba Group in the last year. The consensus among Wall Street research analysts is that investors should “moderate buy” BABA shares. Alibaba also supports the infrastructure of the Internet with a range of products and services that include computing, storage, network, security, database, big data, and IoT connectivity.
The move aims to make “cloud capabilities more inclusive and accessible in the era of AI,” said Alibaba Cloud on Thursday. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Alibaba’s relative strength line has been trending ndax review sharply lower after several months of underperformance vs. the S&P 500. Increased regulatory scrutiny has weighed on Alibaba and other Chinese stocks for the past couple of years. Besides a strict regulatory environment, Chinese stocks have also been dealing with a slowing economy.
This Is What Is Wrong With Alibaba’s Earnings
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 Group has not confirmed its next earnings publication date, but the company’s estimated earnings date is Thursday, May 16th, 2024 based off last year’s report dates.
The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Alibaba. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Alibaba is graded A on this front, indicating that it is trading at a discount to its peers.
The company operates through seven segments including China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. The initial public offering was the largest ever offering at the time, with the company’s market cap reaching $231 billion. Stocks dipped modestly following a report indicating a marginal downward revision in the U.S. economic growth rate for the last quarter of the year. On the other hand, the good news is that CIG as a whole has been something of a money sink for Alibaba.
According to 19 analysts, the average rating for BABA stock is “Strong Buy.” The 12-month stock price forecast is $123.18, which is an increase of 65.08% from the latest price. According to Zacks, Alibaba is expected to earn $8.80 a share in its current fiscal year 2024, up 11% compared to fiscal 2023, with growth slowing a bit in fiscal 2025, up 3% to $9.10. Alibaba stock jumped on June 17 but pared early gains after Reuters reported that China’s central bank accepted Ant Group’s application to set up a financial holding company. The company said in June that Zhang was departing as chairman and CEO of the company to focus on Alibaba’s cloud intelligence unit. In May, Alibaba announced plans to spin off its cloud business as a separate, publicly traded company. According to an SEC filing, Tsai purchased $151 million in Alibaba stock in the fourth quarter via his Blue Pool Management family fund.
Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors’ interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Alibaba.
The top-line growth halted four straight quarters of revenue declines. Sentiment was positive in Chinese stocks again Tuesday after China’s securities and regulatory commission said it would “guide institutional investors…..to enter Chinese stock markets with greater efforts.” Alibaba reported revenues of $36.67 billion in the last reported quarter, representing a year-over-year change of +2.1%. For the current quarter, Alibaba is expected to post earnings of $1.56 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -5.6% over the last 30 days.