ALIBABA GROUP HOLDING - Alibaba Group Holding Limited (‘BABA’) - 01/31/2024 (GMT)

Shares in Alibaba Group Holding Limited (symbol ‘BABA’) incurred losses in the fourth quarter of around 11%. The company’s earnings report for the fiscal quarter ending December 2023 is set to be released on Wednesday 7th of February, before market open. The consensus EPS is $2.40 compared to the same quarter of last year at $2.44. 

‘As of 30/09/2023 the price to earnings ratio (P/E ratio) of the company was at 9.39 which is considered relatively low compared to the average of S&P 500 for example which is around 23. This means that investors are not expecting any significant growth for the company and are somewhat reluctant to invest. Also the company has around 3.2% more long term debt year over year and is making up almost 25% of the total liabilities.’ said Antreas Themistokleous, an analyst at Exness On the technical side the price is testing the resistance level of the 50 day moving average trading just above the support of the 78.6% of the monthly Fibonacci retracement level. The Stochastic oscillator has moved away from the extreme overbought levels while at the same time the faster moving average is trading below the slower one indicating that the overall bearish momentum in the market is still valid. If the price manages to make a valid break above the 50 day moving average then the first level of possible resistance might be seen around the $80 price area which consists of the psychological resistance of the round number, the 100 day moving average and is also just below the 61.8% of the monthly Fibonacci retracement level.