What a difference a day makes, especially for investores of Alibaba Group Holding Ltd (NYSE:BABA). Yesterday we saw shares of Alibaba fall significantly to open trading, after the Chinese Stock Market fell close to 7%. By the end of the day, however, the company’s shares rebounded slightly. Today investors appear to be more bullish on the Chinese company, as the stock is up around 2%.
This comes as the Chinese Market appears to have leveled off after yesterday’s horrendous fall, although another Alibaba Group Holding Ltd (NYSE:BABA) backed company, Meizu, announced today that they will be cutting 5% of its workforce.
In the end, Alibaba Group Holding Ltd (NYSE:BABA) has long been a stable company, one which has been able to break away from other Chinese trends in the market in the past. Investors are showing this confidence today as they appear bullish depite a few hiccups in the Chinese economy.The stock is up 2.05% or $1.57 today, hitting $78.26 per share. About 4.37 million shares traded hands. BABA has declined 15.52% since June 1, 2015 and is downtrending. It has underperformed the S&P500 by 13.40%.
From a total of 23 analysts covering Alibaba (NYSE:BABA) stock, 21 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 91% of the ratings are positive. The highest target price is $137 while the lowest target price is $80. The mean of all analyst targets is $93.92 which is 20.01% above today’s ($78.26) stock price. Alibaba was the topic of 50 analyst reports since August 12, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on October 30 with a “Buy” rating. Axiom Capital maintained shares with a”Buy” rating and a $92 target share price in their report from an October 28. Oppenheimer maintained BABA stock in a recent report from October 28 with a “Outperform” rating. Brean Capital maintained the rating on October 28. Brean Capital has a “Buy” rating and a $98 price target on shares. Finally, Wedbush maintained the stock with a “Neutral” rating in a report they issued on an October 28.
Alibaba Group Holding Limited is a holding company. The company has a market cap of $196.57 billion. The Firm is principally engaged in online and mobile commerce through products, services and technology. It has 21.13 P/E ratio. The Firm provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally.