BABA Drops on Volatility in the Chinese Market

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The BABA stock price fluctuated between $143.34 and $148.45 throughout the trading session with the volume trading being 20M shares, which represented a negative variation when compared to the three months average volume of 25M shares.

The share price of Alibaba Group Holding Limited (NYSE:BABA) dipped -2.6% to close Saturday’s market session at $144.2, lower as compared to yesterday’s close which brings the market valuation of the company to $391.14B.

The 52-week high for the Alibaba Group Holding Limited’s shares is $319.32. That puts it -54.84% from that peak and close to a 52-week low of $143.34, while the S&P 500’s share price change was of 33%.

The company currently has a 17.09 P/E ratio and a price target of $256.26.

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

During the last trading session, Alibaba Group Holding Limited (NYSE:BABA) has seen decay in its daily volume. The daily volume was of 25M, while in the last 10 days the average was 22.69M and last three months – 25.04M.

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 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 391.14B, Alibaba Group Holding Limited holds a total cash of 483.45B CNY that translates into 178.23 CNY per share, while the total debt is of 179.91B CNY.

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 CNY that is 265.43 CNY per share.

This is a great sign for a bright future.