Alibaba is expected to go up, and we are awaiting the earning report release!
ALIBABA, May 17, 2023
Current Price: $88.00
Expected price direction: UP
- ALIBABA (ticker: BABA) - MAY 18, PREMARKET: Q2 EARNINGS REPORT: As per Bloomberg's report, Alibaba is projected to exhibit a revenue growth rate of 3.16% in the first quarter of 2023, amounting to 30.27 billion US Dollars. This figure represents a comparison with the revenue generated in the second quarter of 2022, which amounted to 32.16 billion US Dollars. Additionally, Alibaba's net income in the first quarter of 2023 is anticipated to experience an 11.10% growth rate, reaching 3.63 billion US Dollars. This is in comparison to the net income of 3.26 billion US Dollars recorded in the first quarter of 2022.
- Alibaba Group intends to divide its $220 billion business into six primary units , covering e-commerce, media, and the cloud. Each of these units will consider raising funds or conducting initial public offerings (IPOs) at an opportune moment. This strategic decision grants greater independence to the company's main divisions, allowing them to operate with increased autonomy. Furthermore, it establishes the groundwork for potential future spinoffs and market introductions.
- Based on the International Data Corporation (IDC) findings, Alibaba has consistently held the hird position as the top global provider of public cloud infrastructure as a service (IaaS) since 2018.
- After a lengthy negotiation period, Wang Jian, the founder of Alibaba Group Holding Limited's cloud computing division, is set to make a comeback with a new role. Wang has played a crucial role in steering Alibaba Cloud through its initial and challenging stages. Jack Ma, the founder of Alibaba, has pledged an annual investment of 1 billion Yuan ($143 million) for a decade to support the company. Throughout this time, Wang spearheaded the technical research and development efforts of Alibaba Cloud.
- The rise of expansive AI models has opened up fresh avenues for growth for cloud providers. During the 2023 Alibaba Cloud Summit, the company revealed its intentions to introduce an AI-driven chatbot into all Alibaba products, spanning enterprise communication to e-commerce, in the coming times. Alibaba aims to seamlessly integrate this advanced AI model into its diverse range of businesses, enabling the cost-effective creation of tailored AI capabilities.
- Based on technical analysis of Alibaba’s 1D price chart, two take profit price points have been set at $105.05 and $125.84 respectively, reflecting the recent price jumps and historical performance after previous quarterly reports. A stop loss has been placed at $78.01, which was also the support level for last year's quarterly report entry point. Additionally, a support level has been identified at $58.01, as the stock hasn't fallen below this level in over five years. These price points have been selected based on historical performance, and the upcoming quarterly report is expected to impact the stock's price movement.
Alibaba opportunity based on $3000 Capital Investment Calculation:
| Close Price Scenario 2 | $125.84 | + $3,784.00 |
| Close Price Scenario 1 | $104.61 | + $1,661.00 |
| Open Price | $88.00 | |
| Close Price Scenario 3 | $78.01 | - $999.00 |
- Calculations for exchange rate used as of 13:25 (GMT+1) 17/05/2023
- Lot Size: 1.00 = 100 Shares
- This is not a financial advice and all investors should be aware of the fact that they are responsible for any profits or losses.
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