What is January outlook for Alibaba Group (USA Stocks:BABA)?

BABA Stock

USD 105.45 0.88 0.83%

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The stock is undergoing above-average trading activities. As some millenniums are still trying to avoid internet & direct marketing retail space, I will try to go over Alibaba Group Holding a little further in order to understand its potential as a viable investment. We will analyze why it could be a much better year for Alibaba Group shareholders.

Published over two months ago

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Alibaba Group has a performance score of 2 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.0602, which signifies a somewhat significant risk relative to the market. Let's try to break down what Alibaba's beta means in this case. Alibaba Group returns are very sensitive to returns on the market. As the market goes up or down, Alibaba Group is expected to follow. Although it is important to respect Alibaba Group Holding historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Alibaba Group Holding technical indicators, you can presently evaluate if the expected return of 0.11% will be sustainable into the future. Alibaba Group Holding right now shows a risk of 4.13%. Please confirm Alibaba Group Holding coefficient of variation, jensen alpha, potential upside, as well as the relationship between the variance and maximum drawdown to decide if Alibaba Group Holding will be following its price patterns.

What is January outlook for Alibaba Group (USA Stocks:BABA)?

What is the right price you would pay to acquire a share of Alibaba Group? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

Please read more on our stock advisor page.

What is happening with Alibaba Group Holding this year

Annual and quarterly reports issued by Alibaba Group Holding are formal financial statements that are published yearly and quarterly and sent to Alibaba stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Alibaba Group often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How does Alibaba utilize its cash?

To perform a cash flow analysis of Alibaba Group, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Alibaba Group is receiving and how much cash it distributes out in a given period. The Alibaba Group cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Is Alibaba a risky opportunity?

Let's check the volatility. Alibaba is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Alibaba (USA Stocks:BABA) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of an Alibaba Group stock makes you a part-owner of that company.

Alibaba Group Holding Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Alibaba Group Holding. The Alibaba consensus assessment is calculated by taking the average estimates from all of the analysts covering Alibaba Group

Strong Buy

Buy

Hold

Strong Buy	11	64.71
Buy	3	17.65
Hold	3	17.65
Sell	0	0.0
Strong Sell	0	0.0

Does Alibaba Group have cash to continue?

Alibaba Group current maximum drawdown builds up over 17.65. Alibaba Group Holding exhibits very low volatility with skewness of 0.35 and kurtosis of 1.17. However, we advise investors to further study Alibaba Group Holding technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Alibaba Group's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Alibaba Group's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Alibaba Group

Whereas many other companies in the internet retail industry are either recovering or due for a correction, Alibaba may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 4th of December 2022, our analysis shows that Alibaba Group responds to the market. The company is undervalued and projects low probability of bankruptcy for the next 2 years. Our concluding 90 days buy-sell recommendation on the company is Cautious Hold.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Alibaba Group Holding. Please refer to our Terms of Use for any information regarding our disclosure principles.

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