Jump to content
The Twitter Feeds are now back on the Platform ×

Alibaba earnings – what to watch ahead of Q2 earnings release


MongiIG

Recommended Posts

Alibaba shares have declined steadily in 2021, and while upcoming earnings are expected to see improved revenue generation, the stock may not respond too positively.

bg_alibaba_990910.JPGSource: Bloomberg
 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 02 November 2021 

When does Alibaba report earnings?

Alibaba reports earnings on 4 November, covering its fiscal second quarter (Q2).

Alibaba earnings – what to expect

Q2 revenue is expected to rise to 204 million yuan, from 155 million a year earlier. Net income is forecast to fall to 32.3 million yuan from 49.3 million yuan a year earlier.

The outlook for Alibaba, and investor sentiment toward it, has been dramatically affected by the more direct actions taken by the Chinese government over the past year. While US tech firms have soared, Chinese tech names have taken a dive as the Chinese Communist Party (CCP) looks to crack down on various activities, as well as curbing the success of moguls like Jack Ma, the founder of Alibaba.

This issue overrides the more mundane concerns about earnings and revenue performance, and has resulted in significant investor outflows from Alibaba. The cloud of government action is not going away, which helps to explain why Alibaba shares have performed so poorly this year.

Alibaba broker outlook and forecasts

Despite the negative outlook, 44 analysts still rate Alibaba as a ‘buy’, with three ‘holds’ and only one ‘sell’. An increase in revenue continues to drive this more positive outlook, but it is clear that the market remains sceptical. The median target price of $241 represents 46% upside to the current $164 stock price.

Alibaba stock – technical analysis

Unlike many big name tech stocks, but much like many other Chinese tech stocks, Alibaba continues to see a decline in its stock price over the medium term. This year has been a relentless downward move, one that began a year ago.

The latest bounce has seen the price establish a lower high at $180, hitting resistance around this level as it did in September. A move back below the 50-day simple moving average (SMA) at $162.49 would reinforce the negative view and bring the October low at $140 back into view.

BABA_021121.pngSource: ProRealTime

Alibaba

2021 has been a tough year for Alibaba following the success of 2020, when the company benefited from a post-pandemic recovery like many other big tech stocks.

But it is now a different world for tech stocks in China, and despite some stabilisation of late the outlook seems bleak.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,697
    • Total Posts
      92,062
    • Total Members
      41,981
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    mixer50x350
    Joined 31/03/23 21:31
  • Posts

    • Hello everyone, i am looking to hold shares long term Apple Tesla in a spreadbetting account just wounded if there is a calculation example Tesla $195.00 1 share = ? ponds per point spread bet. Thanks for any help
    • #USDCAD: Time For PullbackUSDCAD reached a key level.Testing that, the price broke and closed above the resistance line of a falling wedge pattern.I expect a pullback now.Goals: 1.355 / 1.3577  
    • Charting the Markets: 31 March The FTSE 100, DAX 40 and Nasdaq 100 surge higher on a positive outlook as EUR/USD, GBP/USD pause their ascents while USD/JPY continues to rise as the greenback appreciates. WTI remains capped by resistance, gold forms a technical triangle as Robusta coffee trades near six-month highs.   Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 31 March 2023                 This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
×
×
  • Create New...