Alibaba (BABA) Stock Is Trading at a Discount Due to Regulatory Risks

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The BABA stock price fluctuated between $195.68 and $199.32 throughout the trading session with the volume trading being 12M shares, which represented a negative variation when compared to the three months average volume of 18M shares.

The share price of Alibaba Group Holding Limited (NYSE:BABA) dipped -1.45% to close Friday’s market session at $196.39, lower as compared to yesterday’s close which brings the market valuation of the company to $532.71B.

The 52-week high for the Alibaba Group Holding Limited’s shares is $319.32. That puts it -38.5% from that peak but still a N/A 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 N/A.

The company currently has a 23.28 P/E ratio and a price target of $295.29.

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 18M, while in the last 10 days the average was 27.82M and last three months – 17.7M.

The increasing interest in the BABA stock from the investors is helping to drive the stock price up.

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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 44.52M shares being shorted which translates into 2.64 of a short ratio for BABA, while in the previous month the shorted shares were 43.76M.

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

With a market cap of 532.71B, 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 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.