Alibaba's Phoenix: Rising from the Ashes of AdversityAlibaba's Phoenix: Rising from the Ashes of Adversity
Alibaba, the e-commerce giant that once soared high in the Chinese business landscape, has recently found itself navigating turbulent waters. The fiscal year ending on March 31, 2023, marked a low point in its financial journey, with revenue growth hitting an all-time low. This downturn sent Alibaba's stock price tumbling to levels not seen in recent memory. But amid the clouds of uncertainty, rays of hope have begun to shine through in the form of promising quarterly results. The question on everyone's mind now is whether the worst is behind Alibaba and whether it's an opportune time to consider investing in its stock.
Alibaba's story serves as a classic tale of a fallen angel. Following its highly anticipated IPO in 2014, the company consistently delivered annual revenue growth rates exceeding 30%. However, the tides turned dramatically over the past couple of years. Alibaba faced a barrage of challenges, including regulatory crackdowns by the Chinese government, a pandemic-induced economic slowdown, and the relentless competition from rising platforms like Pinduoduo and Douying.
The fiscal year that ended in March 2023 bore the brunt of these challenges, with Alibaba's revenue growing by a mere 2%. Even more concerning was the 1% decline in revenue reported by the company's flagship Chinese e-commerce business, traditionally the primary revenue and profit driver.
Such lackluster performance was seen as unacceptable for a company heavily reliant on e-commerce for its financial health.
Thankfully, there are promising signs that Alibaba's performance in fiscal 2023 may have been an aberration. In the most recent quarterly results ending in June 2023, the company witnessed a substantial 14% year-over-year growth in groupwide revenue, accompanied by a remarkable 70% surge in operating income. Notably, all major business divisions, except the cloud division, posted double-digit revenue growth. Even the flagship Chinese e-commerce division managed to achieve a 12% increase in revenue.
While it's early to declare victory, this recent performance suggests that Alibaba's strategic restructuring, involving the division of its empire into six major units, is yielding positive results. All six divisions, in addition to reporting robust revenue growth, have demonstrated significant improvements in profitability. Especially noteworthy are the turnarounds in previously loss-making businesses like Cainiao Logistic and the Digital Media and Entertainment Group in the latest quarter.
However, it's vital to exercise caution and not base all optimism solely on one quarter of promising results. Alibaba's strategic restructuring plan lays a clear path towards a complete recovery, but transformations of this scale take time. It's likely to be several quarters, if not years, before the newly appointed management team steers Alibaba back onto a high-growth trajectory.
Eddie Wu, the recently instated Chairman and CEO, is spearheading a strategic shift with a focus on user satisfaction and harnessing artificial intelligence to drive the business forward. Simultaneously, Daniel Zhang stepped down from his role as chairman and CEO of Alibaba's cloud division. Wu faces the challenge of delivering results in his dual roles as acting chairman and new CEO of the cloud division.
For potential investors, patience is the name of the game. Alibaba's stock is currently trading around $86, only 26% higher than its IPO price in 2014. This, despite the company's revenue surging 15-fold during the same period, from $8.4 billion in 2014 to an impressive $126 billion in 2023.
The recent challenges Alibaba has faced have understandably left investors pessimistic about its future prospects. The stock is trading at a modest valuation, with a price-to-sales (P/S) ratio of 1.8, significantly below its five-year average of 5.5. In comparison, Pinduoduo boasts a P/S ratio of 6.2.
In light of these factors, Alibaba's valuation seems relatively attractive, especially for a leading technology company that still controls some of China's premier businesses.
So, is Alibaba's stock worth adding to your portfolio?
The answer hinges on several factors. On one hand, early indicators suggest Alibaba is on the path to recovery, evident in its respectable revenue growth in the latest quarter. Additionally, the stock's appealing valuation is an enticing proposition.
However, it's essential to acknowledge that regaining its previous growth momentum will take time. Investing in Alibaba's stock comes with the inherent risks associated with Chinese companies, including political uncertainties.
Only those investors possessing the temperament to manage these additional risks and the patience to wait for the company to execute its latest strategies should consider buying the stock. Others may be best advised to remain on the sidelines.
As Alibaba rises from the ashes of adversity, the path ahead is uncertain, but the potential for resurgence is undeniable. It's a story worth watching closely, as it unfolds in the dynamic landscape of Chinese business.
BABA
BABA, Breakout Of Triangle, Next Steps Ahead!Hello Traders Investors And Community,
Welcome to this analysis where we are looking at BABA 4-hour timeframe perspective which is has shown some interesting confirmational and volatile signs recently, therefore, we are looking at recent events, the current price-structure, what we can expect next times, how possible entries can look like and how to handle upcoming situations properly.
Looking at my chart you can watch there that the stock just formed this massive and decisive ascending-triangle-formation which upper boundary and lower boundary are marked in blue, as this triangle has confirmed now properly with a volatile bullish move to the upside this gave a good and healthy edge for further upside ahead. Currently, the stock is approaching some resistance in the level where a pull-back to the upper boundary of the formation is possible as it is seen in my chart, furthermore, the stock has some solid support in this range which is given by the 50-EMA marked in red and below still the 100-EMA in black, these factors making it highly possible support to be confirmed when touched in this area, it is also a good point to open long in this range as it is marked in my chart, with the breakout the stock activated the minimum target which you can watch marked at the 299-300 level, when the stock approaches this it has to be elevated how it will continue further in the range, overall there is definitely some more upside possible.
Although it is possible to increase further in growth above the minimum target it has to be elevated how the stock approaches this range and if there are urgent bearish signs in this range, how they look like or the stock just manages to move above this level and go further.
In this manner, thank you for watching, support for more market insight, all the best!
"Trading effectively is about assessing possibilities, not certainties."
Information provided is only educational and should not be used to take action in the markets.
BABA is a perfect buyStock is cheap. At $88 it's waaay below its value.
Asset Value minus debt divided by a number of shares put BABA somewhere in the $95-110 range. Which means that at $88 it's basically free money.
The only con is VIE structure (Google it yourself) - I have decided to put my trust in VIE structure.
EV/EBITDA is 1.98 which is amazingly low for this type of company. For comparison, Amazon EV/EBITDA is 20.5 at the moment.
I have concluded that risk of VIE structure cancles out the EV/EBITDA discrepancy more than enough.
There is a very high chance that BABA is cheap enough to cancel out every other investment risk.
Do your own research and get to your own conclusions. These are just bullet points and for a small investor this should be a great LONG TERM investment.
Don't expect quick profits, even though there is a high chance of mid to short-term profits with this stock.
$PDD - Rising Trend Channel [MID-TERM]🔹Moving average indicator has provided a POSITIVE signal, indicating a continued upward trend.
🔹Resistance at 104 could potentially trigger a NEGATIVE reaction, but an upward breakthrough of 104 indicates a POSITIVE signal.
🔹Once breakout resistance at 46 is considered a POSITIVE signal.
🔹Technically POSITIVE for the medium long term.
Chart Pattern:
◦ DT: Double Top | BEARISH | 🔴
◦ DB: Double Bottom | BULLISH | 🟢
◦ HNS: Head & Shoulder | BEARISH | 🔴
◦ REC: Rectangle | 🔵
◦ iHNS: inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️
YANG China Leveraged Bearish LONGYANG benefits when the China factories slow down and the economy stagnates
which is the present situation. The weekly chart shows YANG at its highest before
and after covid in 2019-2020. The volume profile shows over the 3+ years most shares
have traded at the present price levels. Price is rising above the POC line of the
volume profile and approaching the long term mean VWAP. The RS indicator shows
sideways strength movement in the mid-ranges. The MACD is curling upward over
a low amplitude histogram. The Asexome Oscillator is sideways. Overall, I will place a
long trade here and then supplement it with an add when the trend direction is stronger
and the Average Directional Index gains amplitude.
BABA BULLISH CONTINUATIONBABA is on a good recovery streak with, steady gain and consolidation, following a solid support line since October 22'. China's economy and development are almost recovered from the horrible decline during the multiple lockdowns and manufacturing shutdowns. The gain/consolidation we are witnessing in the last several months is having an amplitude of 10-15$ which is likely to repeat unless something dramatic happens.
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JD is it a safe short or an early reversal?JD on the 1H chart has been in a solid downtrend worthy of shorting.
However, the zero-lag MACD shows a line cross under the histogram and
a red to green there. The signal has curled. This looks like subtle
divergence. Price is in the area of the mean anchored black VWAP lines.
The mass index indicator is double tapping the reversal zone.
So, what you think? Is there more downside or instead is JD going to
bounce and move up? Please offer your comment !
SasanSeifi 💁♂️BABA 👉1D
Hey there! Let's take a look at what's happening on the daily chart. After some minor fluctuations between the $80 and $90 price ranges, things got exciting! The price broke through the $90 resistance level and soared all the way up to $102. Then, after a small correction and a pullback to the $90 resistance level, it's now trading around $100.
So, what can we expect next? Well, if the $90 price range holds up, we might see the price making its way up to the $108 and $115 supply zones. The possible trend is pretty clear. But, keep your eyes peeled! If the price dips below the support level, we could be in for some more corrections.
Just keep these scenarios in mind as you analyze the market. Remember, things can always change unexpectedly, so stay flexible in your trading approach.❗
Wishing you loads of success in your trading adventures, my friend!✌
❎ (DYOR)...⚠️⚜️
Sure, if you have any more questions or need further clarification, feel free to ask. I'm here to help!
And if you found my analysis helpful, I would appreciate it if you could show your support by liking and commenting. Thank you!🙌
Alibaba's Evolution: A Struggle for Restoration and Renewed...Alibaba's Evolution: A Struggle for Restoration and Renewed Confidence
Once hailed as a beacon of promise tied to China's expansive growth prospects, Alibaba finds itself navigating a complex narrative. The owner of revered e-commerce platforms Taobao and Tmall, as well as the behemoth Alibaba Cloud, the company has weathered a transformation from Wall Street's darling to a thorny challenge for investors in recent years. A series of setbacks, including the Ant Group's IPO cancellation and faltering growth, have propelled Alibaba's stock into a downward spiral, plummeting by more than 70% from its zenith at $317 per share.
Responding to this predicament, Alibaba is orchestrating a significant corporate overhaul, fragmenting its structure into six distinct units. Despite these steps, further actions are necessary to course-correct the beleaguered ship. This article explores two vital domains Alibaba must address to regain investor confidence.
Emerging as an e-commerce powerhouse, Alibaba's growth trajectory has expanded both vertically and horizontally, encompassing sectors like logistics, fintech, entertainment, cloud computing, and more. While the diversified business model garners applause, e-commerce remains the unequivocal core, accounting for a substantial 67% of the company's revenue in the fiscal year ending March 31, 2023. Notably, this segment contributed to the entirety of Alibaba's profits during that period, as other segments reported losses.
Yet, Alibaba's foundation remains predominantly anchored in Chinese e-commerce, presenting a challenge. The flagship endeavor led by Tmall and Taobao faced a 1% revenue dip over the last fiscal year. While pandemic-related lockdowns contributed, the rise of contenders like Pinduoduo and Douyin has intensified pressure. Alibaba must undertake a transformative journey to adapt before this challenge escalates.
In response, Alibaba's reorganization into six units seeks to empower each division with dedicated management, enhancing operational efficiency, market adaptability, decision-making speed, and incentive structures. This endeavor aims to resurrect the entrepreneurial spirit crucial for revitalization.
Investors must grant several quarters to assess the efficacy of these newly established teams. The e-commerce segment must rekindle growth momentum, ideally surpassing industry rates. As Alibaba realigns itself, the path forward holds intrigue as it strives to recapture its competitive edge.
Beyond operational excellence, capital allocation emerges as a pivotal arena requiring attention. Historically, Alibaba directed profits from its e-commerce pillar into high-growth domains like cloud computing and logistics. With autonomous subsidiaries, units now secure funding independently, easing e-commerce's burden.
Alibaba's surplus cash flow beckons strategic redirection to enhance e-commerce and shareholder value. This includes judicious investment in marketing and research, amplifying competitiveness. Share repurchases and dividend policies also warrant consideration, given historically low stock valuations. Fresh ventures are plausible, but discernment is crucial.
Alibaba stands poised to create shareholder value through astute capital allocation. This realm warrants vigilant investor scrutiny, given its profound impact.
Once a cornerstone of China's tech landscape, Alibaba's journey has been marred by errors and external challenges that eroded investor trust. Yet, hope gleams. Alibaba's premier domains remain potent. Restoration lies in honing these for enduring value. Through corporate restructuring, the company embarks on rejuvenation. Patience is vital, awaiting the fruits of this turnaround.
With renewed operations and strategic capital use, Alibaba's renaissance nears. The narrative could return to its former glory, focusing on nurturing its remarkable franchises.
ALIBABA first Golden Cross in 6 months. Buy signal.Alibaba (BABA) is completing today the first Golden Cross formation since January 23. This is a bullish medium-term pattern and along with the 1D RSI bullish trend on Higher Lows, it will most likely end with a Higher High on a 6 month basis.
As you see, the price recently broke above a Channel Up pattern, so we expect an aggressive rally to the Lower Highs trend-line, similar to those rises of January 2023 and June - July 2022. Our target is 116.00, even though there is potential for a direct hit within the 1 Year Resistance Zone.
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$BABA Bearish to Bottom PatternNYSE:BABA Bearish to Bottom Pattern with inverse head & shoulders pattern ready to break. The inverse head and shoulders is a bullish reversal pattern commonly observed in technical analysis of financial markets. It consists of three distinct troughs - a lower trough (the head) flanked by two higher troughs (the shoulders) on either side. This pattern suggests a potential shift from a downtrend to an uptrend.
The inverse head and shoulders pattern signifies a transition in investor sentiment, with the middle trough representing a point of extreme bearishness and the surrounding higher troughs indicating diminishing selling pressure. When the price breaks above the neckline (a level formed by connecting the highs between the shoulders), it confirms the pattern and suggests a potential upward move. This breakout is often accompanied by increased trading volume, reinforcing the likelihood of a trend reversal.
Traders and analysts consider the inverse head and shoulders as a reliable indication of a market bottom and a potential opportunity to enter long positions. It is important, however, to consider other factors and indicators alongside the pattern to make informed trading decisions.
AMZN - Rising Trend Channel [MID -TERM]🔹Breakout resistance at 136 and next resistance at 145
🔹Supports 136 in negative reaction.
🔹Technically POSTIIVE for medium long-term.
Chart Pattern;
🔹DT - Double Top | BEARISH | 🔴
🔹DB - Double Bottom | BULLISH | 🟢
🔹HNS - Head & Shoulder | BEARISH | 🔴
🔹REC - Rectangle | 🔵
🔹iHNS - inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️
$BABA Inverse Head & ShoulderNYSE:BABA Inverse Head & Shoulder. The inverse head and shoulders pattern is a bullish reversal pattern that is often seen in stocks that have been in a downtrend. The pattern is characterized by three troughs, with the middle trough being lower than the other two. The neckline is the horizontal line that connects the bottoms of the two outer troughs.
If the price of BABA breaks above the neckline, it would be a signal that the downtrend is over and that the stock is likely to move higher. The target price for the breakout would be the distance between the neckline and the head of the pattern.
Of course, no pattern is guaranteed, and there is always the possibility that BABA could break down below the neckline instead. However, the inverse head and shoulders pattern is a bullish signal that is worth watching for.
Here's Why $BABA Could Skyrocket Even Higher!Analysis:
Looking at the dataset, it's evident that both the Macro PVVM and Micro PVVM scores for Alibaba ( NYSE:BABA ) show an overall increasing trend over the examined period. The Macro PVVM went from a score of around 0.58 to approximately 54.24, demonstrating a significant uptrend. The Micro PVVM also moved from -53.71 to 40.23, showing a reversal from a bearish to a bullish momentum in the short term.
The close price of NYSE:BABA has been generally increasing along with the PVVM scores, indicating that the bullish momentum has been affecting the stock's price positively.
Key Takeaways:
There's an established bullish momentum, indicated by the upward trend in both the Macro and Micro PVVM.
The Micro PVVM has crossed from negative to positive, suggesting that the bearish short-term movement seen at the beginning of the period has turned into a bullish one.
The most recent close price of $98.33 is the highest over this period, further confirming the bullish sentiment.
Trading Strategy:
Given the bullish trend and movement, it would be a good strategy to maintain a long position on Alibaba. However, traders should keep an eye on the PVVM scores. If there's a sudden drop, especially in the Micro PVVM, it could indicate a reversal in the short-term movement.
Since both Macro and Micro PVVM are in positive territory and increasing, traders should look for opportunities to enter long positions on pullbacks, as the overall trend is upwards. Keep in mind the rule that the best long entries are when both PVVMs are low and start showing signs of strengthening.
$BABA Bearish to bullish reversal bottoming phaseNYSE:BABA Bearish to bullish reversal bottoming phase. The parallel down trend has ended and NYSE:BABA is currently in a bottoming pattern show on the weekly chart. This is a long term investment play that can take months before it can start to go higher.
Is JD a Chinese economy equity setting up a reversal?JD on the long term weekly chart appears to be in a descending wedge pattern which
would generate a bias for a breakout upside. Price is now supported by the one standard
deviation line below the VWAP bands anchored to 2019. The analysis of the ultralong term
volume profile is that the Point of Control is just below price and that the vast majority of
trading volume has been above the current price. I can readily presume that JD is at or
near a bottom and most certainly the 1, 2, and 3 year lows. Analysis on higher time frames
such as the weekly are more likely to be accurate with good signals. On the MACD signals
have crossed in mid-May and now ascending in parallel toward the zero line while price
is bouncing around at what I will call the bottom. Said another way, the MACD is showing
bullish divergence. The upside here over a long term could be as much as 250% and much
much more with a long expiration options contract. I will open a long trade here in
a small position with a stop loss below the POC line and DTA into it over time whenever there
is a pivot low on the weekly chart. I am confident that the Cinese economy with supposedly
zero inflation will be an excellent backdrop for Chinese stocks to run higher in due time.
AMZN - Rising Trend Channel [MID -TERM]🔹Support at 113 and Resistance at 144.
🔹Technically POSITIVE for medium-term long-term.
Chart Pattern;
🔹DT - Double Top | BEARISH | 🔴
🔹DB - Double Bottom | BULLISH | 🟢
🔹HNS - Head & Shoulder | BEARISH | 🔴
🔹REC - Rectangle | 🔵
🔹iHNS - inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️
BABA - How About A Collar Trade?The green zone is long term support.
The Pitchfork projects path of price, on a Pendulum Swing basis.
The sliding parallel (white) marks the overshoot and projected support.
As we see, the steep down sloping yellow dotted resistance line was broken 5 weeks ago. But that's no reason to rush in. Why not wait for more facts?
Do we have facts now?
Yes, we have.
a) support at the sliding
b) today we see a close above the last high AND a break of the (grey horizontal) resistance.
How can we play this with low risk?
What about a Collar?
1. Buy Stock
2. Buy Put ATM
Optional:
- sell a longer dated Call (potentially limiting stock profit to finance the put)
- sell lesser Calls, to let the rest of the stock position ride, if price close ITM and calls away your (partial) position.
That's just an idea how to play it save.
Why save? What if BABA tanks?
- sell Put profit and buy more stocks to bring down the cost basis. Repeat until B/E or in profit. Additionally you can sell more Calls if they are above calculated cost basis.
Highest Risk: If the stock go to zero, then the initial investment of stocks is gone. Could it happen? Yes. High chance of happening? Don't think so.
Would love any input about this idea.
Happy weekend §8-)
LI , a Chinese EV manufacturer LONGLI has seen a 60% price rise since significantly beating the earnings estimates of the analysts.
LI competes with TSLA and NIO primarily in Chinese and perhaps a little in Scandinavia. It
does not import to North America. The 2H chart shows price rising consistently in a channel
between the first and second standard deviation lines above the mean anchored VWAP
demonstrating trend persistence and momentum. The zero-lag MACD shows a line cross
at the zero horizontal line and rising as confirmation of bullish momentum. I see $40
as a reasonable target at the level of the 3rd upper standard deviation lines. With the
next earnings report due August 21st, I will take a long trade of ten call options striking
$38.00 expiring 8/18/23. On the last trading day, this option had a low of $1.75 and
a high of $1.90 for an intraday rise of about 8%. The contracts will cost about $1900.
I am expecting about a 3% average rise compounded over 30 trading days or 250%
return on the trade.