- BABA stock continues to slide as more Chinese scrutiny hits.
- China has asked DiDi Group to delist from New York, according to Bloomberg.
- Alibaba earnings also missed forecasts earlier this week.
Alibaba (BABA) stock just cannot catch a break this year as yet more misery is heaped on shareholders. Earnings this week were poor with a miss on top and bottom lines and now more Chinese regulatory scrutiny is hitting sentiment as Bloomberg reports that China has asked Didi Group (DIDI) about a potential delisting from the New York Stock Exchange. China is growing increasingly concerned over the amount of data its huge tech companies have access to and how this is stored.
-637735180335149784.png)
Alibaba (BABA) chart, weekly.
Our weekly chart above shows the level of decline in 2021. Over 40% and counting year to date.
Alibaba (BABA) stock news
BABA earnings were out on November 18. Earnings per share (EPS) missed estimates coming in at $1.74 versus $1.93. Revenue also missed forecasts coming in at $31.15 billion versus the $32.05 billion estimate. Alibaba (BABA) also revised its revenue guidance downward to forecast 20% revenue growth when analysts had been looking for a number nearer to 30%. BABA had in an earlier earnings report indicated growth near 30% for the year in revenue terms so this was a further blow to investors sentiment.
Alibaba (BABA) was also fined by China's antitrust regulator last week for nondisclosure in relation to some old mergers and acquisitions deals. More bad news hit BABA this week as Warburg Pincus, a private equity firm, lowered its valuation of BABA subsidiary ANT Group by up to 15%. Ant Group was supposed to have been spun off in an IPO late in 2020. Reuters reports that Warburg Pincus revised its valuation from $224 to $191 billion on "regulatory developments". Warburg Pincus was an investor in the Ant Group 2018 fundraising.
Now news hits of DIDI reportedly being asked to consider delisting in New York according to Bloomberg. While not a direct link to BABA stock it nonetheless highlights growing investor concerns over Chinese tech companies and will add to negative sentiment. Alibaba (BABA) stock is already trading over 3% lower in Friday's premarket.
Alibaba (BABA) stock forecast
From the weekly, longer-term view we can see strong support just under $130 at $129.77. These are the lows from November and December 2018. Breaking that will lead the next target to likely be $100.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.