Alibaba Group Holding Limited (NYSE: BABA) is experiencing a volatile day on the market, with shares failing to hold onto strong opening gains. As of 11:41 AM EDT, the Chinese e-commerce giant’s stock was trading at 1.41 or 1.30% for the session.
The intraday chart shows a dramatic price swing at the market’s open. After trading in a tight range during pre-market hours, BABA stock surged at 9:30 AM EDT, hitting a daily high of $108.20 on a massive spike in volume. However, the rally was immediately met with heavy selling pressure, causing the price to reverse course and fall below its opening price, settling into a new, lower trading range. This pattern indicates that early buyers were quickly overpowered by sellers.
Should You Buy or Sell BABA Stock Today?
The technical and fundamental data for BABA present two very different stories for investors to consider.
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For Short-Term Traders: The intraday chart is currently bearish. The failure to hold gains above the 108.20) and low ($107.11). A break below the day’s low could signal further downside for the session.
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For Long-Term Investors: The long-term picture appears significantly more optimistic. The stock trades at a relatively low Price-to-Earnings (P/E) ratio of 14.34, suggesting it may be undervalued compared to its earnings. Most notably, the 1-year analyst target estimate is an impressive $162.01, implying substantial potential upside from the current price. For investors with a long-term horizon who are comfortable with the risks associated with Chinese equities, today’s price could be viewed as an attractive entry point.
Our Opinion on the Stock
The short-term technical picture for Alibaba (BABA) is weak, dominated by the failed rally at the open. The stock seems likely to consolidate or drift lower for the remainder of the day unless a new catalyst emerges.
However, from a fundamental and value-investing perspective, BABA presents a compelling case. The vast disconnect between its current price and the analyst consensus target, combined with a low P/E ratio, is hard to ignore. The stock’s extremely low Beta of 0.21 also indicates it is far less volatile than the overall market, a rare trait for a tech company. The primary consideration for long-term investors remains geopolitical risk, but for those willing to look past it, BABA appears to offer significant long-term value potential.
