Alibaba (BABA) Stock Is Set to Recover

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The BABA stock price fluctuated between $173.37 and $176.84 throughout the trading session with the volume trading being 23M shares, which represented a positive variation when compared to the three months average volume of 22M shares.

The share price of Alibaba Group Holding Limited (NYSE:BABA) ran up 2.85% to close Tuesday’s market session at $175.16, higher as compared to yesterday’s close which brings the market valuation of the company to $474.84B.

The 52-week high for the Alibaba Group Holding Limited’s shares is $319.32. That puts it -45.15% from that peak but still a good gain since the share price dropped to a 52-week low of $152.80, while the S&P 500’s share price change was of 33.44%.

The company currently has a 21.04 P/E ratio and a price target of $268.26.

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 22M, while in the last 10 days the average was 24.73M and last three months – 22.09M.

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

Shrinking short interest

The Alibaba Group Holding Limited’s shares are seeing a decreasing short interest compared to the previous month. As of today, there are 45.77M shares being shorted which translates into 2.36 of a short ratio for BABA, while in the previous month the shorted shares were 47.57M.

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

With a market cap of 474.84B, Alibaba Group Holding Limited holds a total cash of $483.35B that translates into $177.75 per share, while the total debt is of $181.24B.

The company has seen an increase in the revenue with a year-over-year quarterly revenue growth percentage of 33.80%. The current revenue is of $769.28B that is $284.10 per share.

This is a great sign for a bright future.