Everything you should know about Alibaba-TFtalks
BABA still holding its majority 58ish level, which as what I draw, it is more like a weekly or even monthly majority support for BABA. Shares of Chinese tech giants Alibaba and Tencent closed down more than 11%; search company Baidu was 12% lower while food delivery firm Meituan tanked more than 14%. However, is BABA or most China tech giants worth buying at this moment?
The main reason cause massive sold for most Chinese tech giants yesterday was President Xi has safely secured his "precedent-breaking" third term as the Chinese Communist Party's ruling leader, alongside a newly appointed Politburo Standing Committee composed of his most-trusted associates. Investors fear continuing strict policy that could hamper growth of tech giants and very few people who can challenge Xi’s policies, even those that are negative for growth.
While the regulatory and geopolitical risks surrounding Chinese equities have now become more acknowledged amongst the investing community today compared to a year ago, the top bullish narratives over the Alibaba stock have largely remained unchanged.
Alibaba’s fundamental performance has deteriorated significantly, the company’s fundamental cracks first shone through its weak December-quarter results last year, when Taobao’s blockbuster annual “Singles Day” shopping event in November grew at the slowest pace on record. Things got worse during the June-quarter when Shanghai was subject to a monthslong lockdown to stem the spread of Covid. Yet, Alibaba remains the unmatched market leader in e-commerce and cloud-computing in China – so from the grander scale of things, its fundamentals are still strong, with the business remaining viable and profitable. However, China's overall economy condition doesn't keep growth like what they post, and preliminary data showed consumer spending had weakened during the weeklong National Day holiday earlier this month.
President Xi’s aspirations to strengthen China’s fight against the U.S. means more geopolitical turmoil to come. This is further corroborated by the recent curbs imposed by the U.S. government on exports of advanced semiconductor technologies to China, which will limit Alibaba’s aspirations of growing its global cloud-computing market share. Alibaba’s valuation is cheap abviously, with its multiples plunging toward record lows and diverging further away from American equivalents like Amazon ( AMZN ) by wide margins. Yet, there also isn’t anything compelling to convince investors – namely, market-influencing institutional investors with stringent risk mandates – that the stock’s significant discount relative to peers can compensate for the myriad of risks hanging over its prospects.
From the Tech or chart analysis side of view, BABA already reached 58ish historical support level , its normal that we see tech buyers get in at this price and trying to trade for rebounce or reversal. But be aware that "downtrend" is not end here! The "GAP" has already been filled, and BABA is making a intraday pattern, which means market is trying to choose direction about BABA. HSI had another hugh sale of the day, it will not end right here. Tech buyers for price correction will gone. Therefore, most likely BABA will retest 58ish level and see wether fundamentals are strong enough to pull this back.
The investments and idea published may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from independent financial advisor or other professionals to determine what may be best for your individual needs. We do not and cannot guarantee that your use of our APP and/or any of its features will generate profits. All opinions, news, reviews, research, analysis, prices, or other information contained on or provided via this site are provided on an “as is” basis as general market commentary and/or expressions of opinion only. Information may not be complete, accurate or up to date and may not be suitable for every individual, nor be a suitable basis for an investment decision. No representation, warranty, undertaking, assurance or guarantee (express or implied) is made or given as to the availability, adequacy, accuracy, completeness, reasonableness or appropriateness of any of the information or opinions provided or expressed on or through this site. There is no obligation to notify you of any corrections or modifications.
The main reason cause massive sold for most Chinese tech giants yesterday was President Xi has safely secured his "precedent-breaking" third term as the Chinese Communist Party's ruling leader, alongside a newly appointed Politburo Standing Committee composed of his most-trusted associates. Investors fear continuing strict policy that could hamper growth of tech giants and very few people who can challenge Xi’s policies, even those that are negative for growth.
While the regulatory and geopolitical risks surrounding Chinese equities have now become more acknowledged amongst the investing community today compared to a year ago, the top bullish narratives over the Alibaba stock have largely remained unchanged.
Alibaba’s fundamental performance has deteriorated significantly, the company’s fundamental cracks first shone through its weak December-quarter results last year, when Taobao’s blockbuster annual “Singles Day” shopping event in November grew at the slowest pace on record. Things got worse during the June-quarter when Shanghai was subject to a monthslong lockdown to stem the spread of Covid. Yet, Alibaba remains the unmatched market leader in e-commerce and cloud-computing in China – so from the grander scale of things, its fundamentals are still strong, with the business remaining viable and profitable. However, China's overall economy condition doesn't keep growth like what they post, and preliminary data showed consumer spending had weakened during the weeklong National Day holiday earlier this month.
President Xi’s aspirations to strengthen China’s fight against the U.S. means more geopolitical turmoil to come. This is further corroborated by the recent curbs imposed by the U.S. government on exports of advanced semiconductor technologies to China, which will limit Alibaba’s aspirations of growing its global cloud-computing market share. Alibaba’s valuation is cheap abviously, with its multiples plunging toward record lows and diverging further away from American equivalents like Amazon ( AMZN ) by wide margins. Yet, there also isn’t anything compelling to convince investors – namely, market-influencing institutional investors with stringent risk mandates – that the stock’s significant discount relative to peers can compensate for the myriad of risks hanging over its prospects.
From the Tech or chart analysis side of view, BABA already reached 58ish historical support level , its normal that we see tech buyers get in at this price and trying to trade for rebounce or reversal. But be aware that "downtrend" is not end here! The "GAP" has already been filled, and BABA is making a intraday pattern, which means market is trying to choose direction about BABA. HSI had another hugh sale of the day, it will not end right here. Tech buyers for price correction will gone. Therefore, most likely BABA will retest 58ish level and see wether fundamentals are strong enough to pull this back.
The investments and idea published may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from independent financial advisor or other professionals to determine what may be best for your individual needs. We do not and cannot guarantee that your use of our APP and/or any of its features will generate profits. All opinions, news, reviews, research, analysis, prices, or other information contained on or provided via this site are provided on an “as is” basis as general market commentary and/or expressions of opinion only. Information may not be complete, accurate or up to date and may not be suitable for every individual, nor be a suitable basis for an investment decision. No representation, warranty, undertaking, assurance or guarantee (express or implied) is made or given as to the availability, adequacy, accuracy, completeness, reasonableness or appropriateness of any of the information or opinions provided or expressed on or through this site. There is no obligation to notify you of any corrections or modifications.