Alibaba Stock Forecast: BABA shares in turnaround mode after Singles Day record

290,000 brands took part in Alibaba's Singles Day.
Alibaba's 13th Singles Day brought in a record $84.7 billion.
BABA stock kicker formation forecasts bullish reversal.

Clay Webster FXStreet

Despite much hoopla about regulatory woes and government obstinance, and the repeated certainty by critics that this year the event would be "muted," Alibaba (BABA) shares jumped on both Wednesday and Thursday on positive news regarding the e-commerce giant's Singles Day. At the time of writing, BABA shares are down 1.8% at $164.88 at the start of Friday's session.

Alibaba Stock News: Singles Day sales up 14%

Alibaba's Singles Day – the largest shopping day event of its kind in the world – brought in $84.7 billion in gross merchandise sales. This was 14% higher than last year, a time when BABA stock first began to slide after Chinese regulators put a halt to the IPO of ANT Financial, a one-time subsidiary.

This was the 13th year of the event. Though many critics focused on the sales growth slide of the event, the figures appear impressive since China is facing both a supply chain slowdown and a fall in consumer spending.

Last week, Alibaba Cloud unveiled both new custom proprietary servers for use at its data centers and in-house designed Yitian 710 server chips, as well as announcing the construction of two new data centers in Thailand and South Korea.

With less than one week before the next earnings results, Wall Street consensus has Alibaba reporting earnings per share (EPS) of $1.95 – 28% lower than the year prior – on revenue of just over $32 billion. That last figure should warm the hearts of some investors as it is a 36% gain YoY from the $23.5 billion in revenue reported in the same quarter last year.

BABA key statistics

Market Cap	$453 billion
Price/Earnings	18.9
Price/Sales	3.6
Price/Book	2.8
Enterprise Value	$393.6 billion
Operating Margin	13.7%
Profit Margin	19.3%
52-week high	$319.32
52-week low	$138.43
Short Interest	2.7%
Average Wall Street Rating and Price Target	Buy 243.18

BABA Stock Technical Analysis: A kicker to boot

Alibaba stock had been trending down since the end of October in what seemed like a prolonged correction. BABA appears to have found its legs, however, on Wednesday, when the stock decided to go against the grain and open well above Tuesday's close. Thursday again showed another kicker candlestick that opened above the high on Wednesday. This is significant since Wednesday saw a long wick on top pushed down by bears.

Typically, a kicker pattern like this is the sign of a reversal. If last Friday's low in the $158s is truly the bottom, then bulls need to confirm this by pushing to a new high above the October 20 high of $182.32. If BABA stock can surmount that prior swing high, then this will confirm that the stock is traversing a new ascending price channel.

BABA daily chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.