Alibaba Group Holding Ltd (BABA) Stock Plunges on China Worries


Shares of Alibaba Group Holding Ltd (NYSE:BABA) are down big again in early trading today after Chinese markets were halted once again. Concerns over China naturally are carrying over to companies which operate primarily in China like Alibaba Group Holding Ltd (NYSE:BABA).

The stock is down considerably over the last four trading days. In fact, shares have plunged around 10% over that time frame. Today’s trading is already off to a volatile start as shares opened and immediately plunged as low as $71.88 before bouncing back into the $73.50 range within minutes. It will be interesting to see how the remainder of the day plays out, and if traders begin to see shares of Alibaba Group Holding Ltd (NYSE:BABA) as being undervalued now that the PE ratio is around 20. The stock has fallen 4.59% or $3.55 following this negative news, hitting $73.82 per share. Approximately 2.86 million shares traded hands. BABA shares have declined 14.83% since June 3, 2015 and are currently downtrending. It has underperformed the S&P500 by 10.13%.

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 27.23% above today’s ($73.82) 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 $185.37 billion. The Firm is principally engaged in online and mobile commerce through products, services and technology. It has 20 P/E ratio. The Firm provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally.