Alibaba (BABA) Is a Cautious Buy at This Discount

Advertisements

During the last session 17M of Alibaba Group Holding Limited’s (NYSE:BABA) shares were traded. The stock closed at $200.22 per share indicating that it gained $5.03 or 2.58% during that day which brings the Alibaba Group Holding Limited’s valuation to $544.23B.

The 52-week high for the Alibaba Group Holding Limited’s shares is $319.32. That puts it -37.3% from that peak but still a -24.33% gain since the share price dropped to a 52-week low of $179.67, while the S&P 500’s share price change was of 33.41%.

The company currently has a 23.68 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 growth in its daily volume. The daily volume was of 17M, while in the last 10 days the average was 35.94M and last three months – 17.33M.
The increasing interest in the BABA stock from the investors is helping to drive the stock price up.

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 47.57M shares being shorted which translates into 3.1 of a short ratio for BABA, while in the previous month the shorted shares were 46.71M.

Alibaba Group Holding Limited (NYSE:BABA)’s financials

With a market cap of 544.23B, Alibaba Group Holding Limited holds a total cash of $483.45B that translates into $177.86 per share, while the total debt is of $181.44B.

The company has seen an increase 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 great sign for a bright future.