Please disable Ad Blocker before you can visit the website !!!

Alibaba LONG

by SignalFactory   ·  August 5, 2020 | 09:08:30 UTC  

Alibaba LONG

by SignalFactory   ·  August 5, 2020 | 09:08:30 UTC  

Shares of Alibaba (NYSE: BABA) surged last month as the company rode a broader wave in Chinese stocks on signs that China’s economy was recovering as the U.S. fell victim to a resurgence in coronavirus cases. A call from China’s state-owned media also helped push Chinese stocks higher. According to data from S&P Global Market Intelligence, Alibaba, China’s biggest e-commerce platform, finished July up 16%.

So what?

The Chinese stock market jumped after a July 6 front-page editorial in a state-owned newspaper said that “a healthy bull market” was crucial for the country’s recovery from the coronavirus, which seemed to drive retail investors to buy Chinese stocks. The news lifted the Shanghai Composite by 5.7%, and Alibaba by 7.3%. The tech giant followed that up with another 7% gain on July 8.

Though there was no specific news out on the company, Alibaba is well-positioned to thrive during the pandemic as the company operates China’s largest e-commerce marketplace as well as a fast-growing cloud-computing business. Still, while U.S. e-commerce stocks have boomed this year, investors have largely overlooked Alibaba, which generates billions in profits and trades at a very reasonable P/E ratio of just 30 based on this year’s expected earnings.

Later in the month, plans emerged for the company to take Ant Financial public. That Alibaba fintech subsidiary, which owns Alipay, could reap $30 billion in an IPO in Asia and hit a $200 billion valuation.

Now what?

Alibaba will report quarterly earnings later this month. Analysts are expecting a strong recovery as Chinese economic data has shown the economy bouncing back from lockdowns in the first quarter, and earnings reports from U.S. companies like Apple and Tesla have topped expectations thanks to robust Chinese consumer demand, a bullish signal for Alibaba’s quarter.

Analysts expect Alibaba’s revenue to jump 45.8% in the quarter to $21.1 billion, and for earnings per share to increase from $1.77 to $1.97. Considering the broader momentum in e-commerce shares, a strong report could spark another surge in the stock.

A top income share that boasts a reliably defensive business model… plus a current forecast dividend yield of 4.2% to boot!

With global markets in turmoil as the coronavirus, pandemic tightens its grip, turning to shares to generate income isn’t as simple as it used to be…

Alibaba LONG (Buy)

ENTER AT: 266.39

T.P_1: 283.19

T.P_2: 294.81

T.P_3: 313.51

S.L: 253.95

All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user. This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use. Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered. While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all. All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information. All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way. The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions. Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company. Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results. Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.

Signal Factory is now on Telegram

make sure to join our Telegram channel now and you will not miss any update