A 20-year professional trader reveals his “money line”
Ditch the indicator and use “MoneyLine”. Simple lines take the guesswork out of knowing when to buy or sell. This is the line on the chart that helped Nic Chahine earn his 83% of option purchases. Here's how he does it.
Alibaba Group Holding Limited (NYSE:BABA) stock price has continued to consolidate significantly since bottoming out in late October 2022. The company remains reeling from tightening regulations and slowing domestic economic growth. As the Jack Ma-founded company prepares to release its fourth-quarter results before the market opens on Tuesday, let's take a look at where it stands in the short and medium term.
Prolonged economic downturn: Alibaba's valuation has plummeted since its peak market capitalization of $858.5 billion in late October 2022. As of Friday's close, its market capitalization was $194.79 billion. The decline began when the Chinese government began cracking down on big technology companies, citing concerns that their massive growth was giving them monopoly power.
Source: Y chart
It all started a day after Alibaba's sister company Anti Financial priced its initial public offering, with Mr. Ma criticizing banking regulations and attacking the Chinese Communist Party government. The reaction was immediate. The company was fined a hefty $2.8 billion for engaging in monopolistic conduct, and Ant's IPO was quickly shelved.Mr. Ma went into self-imposed exile, leaving behind his trusted lieutenant. daniel chan To manage his affairs in his absence.
What started as an onslaught on Alibaba has spread to other big tech companies.
To make matters worse, despite the resumption of economic activity following the coronavirus disease 2019 (COVI-19) pandemic, China's economy continued to reel under below-average economic growth and a deflationary environment.
Alibaba also faced competition from a group of smaller social commerce companies that integrated social interaction and e-commerce, offering personalized content recommendations, user-generated content, and influencer endorsements.
See also: Best Chinese Stocks
Resuscitation efforts: Alibaba's turnaround efforts included a decision in March 2023 to split the company into six businesses. Its core businesses are Alibaba's domestic e-commerce business, Cainiou logistics business, Aliyun cloud computing business, international e-commerce, digital service business, and small media group. .
However, in June, the company's leadership baton was passed to the next person. eddie wu One of the co-founders. Mr. Zhang has been transitioned to the role of leading the company's cloud business. Later, in September, Zhang resigned from all positions at Alibaba. Under the new leadership, this divisive strategy was reversed. IPO plans for its cloud business were abandoned in November, and earlier this year the company also scrapped Cainiao's IPO plans, opting instead to acquire the remaining 36% stake it didn't already own.
Fourth quarter expectations: Analysts, on average, expect the company to report earnings per share of $30.42 billion and revenue of $1.41. This compares with $1.50 per share, or $29.15 billion, in the same period last year.
Alibaba's Taobao online shopping and Tmall B2C online retail platforms may have seen a significant increase in total product value, Bloomberg reported.
China reported year-on-year growth of 5.3% in the March quarter, beating consensus expectations, but consumer spending did not show a significant improvement.
Alibaba has recently increased its focus on generative AI, a widely adopted and cutting-edge technology. Last week, the company released his Qwen2.5, the latest version of a large family of language models called Tongyi Qianwen.
“Since the launch of our AI development platform last June, the Qwen family has been deployed by more than 90,000 enterprise users via Model Studio,” Ali Cloud said in a statement.
Alibaba's New York Stock Exchange-listed ADRs closed 0.73% higher at $80.02 on Friday, according to data from Benzinga Pro.
Read next: Alibaba's new AI model claims to outperform OpenAI's GPT-4 in language skills
Photo: Shutterstock
A 20-year professional trader reveals his “money line”
Ditch the indicator and use “MoneyLine”. Simple lines take the guesswork out of knowing when to buy or sell. This is the line on the chart that helped Nic Chahine earn his 83% of option purchases. Here's how he does it.
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