BABA Stock Price: Alibaba continues slide into the weekend amidst earnings aftermath

NYSE:BABA fell by 2.27% during Friday’s trading session.
AliBaba shareholders will look ahead to the company’s Investor Day Event.
AliBaba stock is cheap, but it is still not a buy.

Stocks Reporter FXStreet

NYSE:BABA saw an ugly year get even uglier on Thursday as the company reported its fiscal second quarter earnings results before the markets opened. Shares of Alibaba fell by more than 10% following the report, and the aftermath of the disappointing quarter continued into Friday’s session. AliBaba fell by a further 2.27% and closed the trading week at $140.34. Shares are still trading well below both the key 50-day and 200-day moving averages, which gives an indication of how prolonged this downturn has been. AliBaba also tumbled in Hong Kong on Friday, falling by 10.7% which is the most since the company started trading publicly on the Hang Seng index.

Stay up to speed with hot stocks' news!

The year over year growth for AliBaba wasn’t terrible, but it did fall short of analyst expectations. The company attributed much of its decline to ongoing regulatory crackdowns from the Chinese government, something that may stick with the tech industry moving forward. Investors will now turn to AliBaba’s Investor Day Event which begins on December 16th. There is hope that this will shine some light on some of AliBaba’s growth initiatives for the rest of the year and heading into 2022. At this point, it seems like shareholders are grasping at anything for some positive news from the downtrodden company.

BABA stock forecast

Investors may be tempted to buy shares of AliBaba at its current price. After all, the investing narrative has always been to be greedy when others are fearful. There is no stock with more negative sentiment around it right now than AliBaba, but that does not necessarily mean it is a buy. The company will have to prove that it can exist with the CCP continuing to crack down on Chinese business. It also needs to show investors that it has opportunities for growth in the future. As of now, AliBaba has fundamentally changed as an investment thesis, and there may be more pain ahead before the stock is able to recover.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

EUR/USD struggles below 1.1800 ahead of US data, Fedspeak

EUR/USD remains trapped in a tight range below 1.1800 in the European session on Tuesday. The pair struggles amid a modest US Dollar strength and an improvement in risk sentiment, even as US tariff uncertainty lingers. The focus now remains on the US data and Fedspeak.

GBP/USD stays defensive below 1.3500 as USD firms up

GBP/USD stays on the back foot below 1.3500 in the European trading hours on Tuesday. The pair declines as the US Dollar rebounds from losses recorded over the previous two sessions. Traders will focus on the US weekly ADP Employment Change and Consumer Confidence data due later in the day, along with speeches from Federal Reserve officials.

Gold holds pullback below $5,200 amid USD uptick

Gold holds moderate losses below $5,200 in European trading on Tuesday, though it lacks follow-through selling. Following the previous day's knee-jerk fall in reaction to US President Donald Trump's new global tariffs and the subsequent bounce, the US Dollar attracts fresh buyers ahead of mid-tier data and Fedspeak.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.

AI-scare trade and tariff uncertainty takes hold

It was quite a day, with AI-disruption fears and tariff uncertainty triggering a risk-off session. By now, it's nearly impossible to have missed the Supreme Court's 6-3 decision that struck down US President Donald Trump's reciprocal tariffs last Friday.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.