Alibaba Still a Strong Pick Despite Virus Disruption

AlibabaThe novel Coronavirus discovered in Wuhan at the end of last year has disrupted the Chinese economy in 2020, however, there are still Chinese stocks that offer plenty of potential for American investors. Alibaba Group (NYSE: BABA) is perhaps the most well known of all, and it’s also a strong bull stock for an expanding global economy. Find out what makes this stock one to consider in February.

7 of the Biggest Mistakes People Make When Choosing a Financial Advisor Learn More

Alibaba is a holding company that focuses on e-commerce, digital sales services, internet services, and technology. It is the nearest global equivalent to Amazon, and it is the leading e-commerce provider in Asia. The company will release its latest quarterly financial results today, with analysts expecting earnings per share of $2.27, up from $1.82 in the year ago period. Revenue is expected to be close to $22.66 billion, compared to $17.47 billion a year ago.

There’s huge potential in the Chinese market, despite the disruption caused by Coronavirus. Earnings could suffer in the second and third quarters, but the impact of the virus is likely to be short-lived. Alibaba stock could decline in the coming months based on market fears, but this would likely be countered by fresh confidence if growth picks up again by the end of the year.

E-commerce sales grew by 18% in China during the holiday shopping period, indicating that there’s a lot of potential in the market for large companies like Alibaba. Investors should wait for news of the earnings call this Thursday. If sales and revenue growth are close to expectations, this stock is likely to continue its bull run.

Key Data:

  • 1 Year Price Growth: 22%
  • YTD Price Growth: 76%
  • 3 Month Price Growth: 71%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

You May Also Like