BABA Stock Price Forecast: Alibaba Group Holding trades flat amidst volatile period for Chinese stocks

  • NYSE:BABA sheds 0.23% to start the week, despite global financial markets rallying.
  • BABA is flying high after its 2020 Singles Day event sees a 26% spike in sales.
  • Investors see volatility ahead as the Trump Administration seeks to enforce regulations on Chinese companies. 

NYSE:BABA dipped slightly to start off the trading week as shares of the Chinese eCommerce Giant fell 0.23% to close Monday’s trading session at $270.11. The stock has trailed off after a strong rally at the end of last week as momentum from the most recent Singles Day event re-ignited investor interest. Still, the stock is down 15% over the past month after reaching its 52-week highs of $319.32 in late October. BABA is now trading below its 50-day moving average as the prolonged dip has presented a nice buying opportunity for investors. 

Sales numbers for BABA’s most recent Singles Day event on November 11th are in and the continued reliance on eCommerce during the COVID-19 pandemic clearly had an effect. Total sales were up 26% year-over-year with over $74 billion in sales which makes Amazon’s (NASDAQ:AMZN) Prime Day numbers of an estimated $10.4 billion, seem meagre in comparison. Alibaba also finds itself at yet another spat between the United States and China, as the Trump Administration continues to try and implement harsh measures during what is most likely the final few weeks of his presidency. President Trump is attempting to force Chinese companies to be delisted from American exchanges if they do not abide by the U.S. auditing rules. 

BABA stock forecast

BABA stock price chart

Truthfully, Alibaba may still be reeling from the debacle that was the failed IPO attempt of its fintech company ANT Group. Although the IPO should still take place in the next year or so, investors may be hesitant to get involved with Jack Ma right now as may still be under the ire of members of the Chinese Communist Party after his public criticism of them. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News