Alibaba (BABA) Is Showing A Growing Short Interest


The BABA stock price fluctuated between $190.88 and $198.55 throughout the trading session with the volume trading being 54M shares, which represented a positive variation when compared to the three months average volume of 15M shares.

The share price of Alibaba Group Holding Limited (NYSE:BABA) dipped -7.27% to close Monday’s market session at $191.52, lower as compared to yesterday’s close which brings the market valuation of the company to $531.34B.

The 52-week high for the Alibaba Group Holding Limited’s shares is $319.32. That puts it -40.02% from that peak but still a -17.67% gain since the share price dropped to a 52-week low of $190.88, while the S&P 500’s share price change was of 36.19%.

The company currently has a 22.74 P/E ratio and a price target of $292.21.


What does the trading volume tell us about the BABA stock?

During the last trading session, Alibaba Group Holding Limited (NYSE:BABA) has seen decay in its daily volume. The daily volume was of 15M, while in the last 10 days the average was 13.45M and last three months – 15.07M.
The decreasing interest in the BABA stock from the investors is helping to drive the stock price down.

Growing short interest

The Alibaba Group Holding Limited’s shares are seeing an increasing short interest compared to the previous month. As of today, there are 48.27M shares being shorted which translates into 3.83 of a short ratio for BABA, while in the previous month the shorted shares were 44.52M.

Alibaba Group Holding Limited (NYSE:BABA) financials

With a market cap of 531.34B, Alibaba Group Holding Limited holds a total cash of $483.45B that translates into $178.23 per share, while the total debt is of $179.91B.

The company has seen a decrease in the revenue with a year-over-year quarterly revenue growth percentage of 63.90%. The current revenue is of $717.29B that is $265.43 per share.
This is a good sign for the future.