BABA Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Given the user's beginner investment level, long-term strategy, and available capital, Alibaba is not a strong buy at this moment. The stock is facing headwinds from declining net income, negative sentiment from recent news, and a lack of strong technical or trading signals. While there are some long-term growth opportunities in AI and cloud, the current financial and sentiment issues suggest waiting for a clearer entry point.
The stock's MACD is negative and contracting, RSI is neutral but leaning towards oversold, and moving averages are converging, indicating no clear trend. The price is close to a key support level (S1: 154.288), but there is no strong bullish signal.
Hedge funds are increasing their positions significantly (+222.92% last quarter). Long-term growth opportunities in AI and cloud services remain promising.
Recent allegations of assisting the Chinese military have led to compliance concerns. Declining net income (-52.12% YoY) and EPS (-53.12% YoY) in the latest quarter. Analysts are mixed, with recent downgrades citing declining margins and rising liabilities.
In Q2 2026, revenue grew by 4.85% YoY, but net income dropped significantly by 52.12% YoY, and EPS fell by 53.12% YoY. Gross margin improved slightly to 38.82%.
Recent analyst ratings are mixed. Erste Group downgraded the stock to Hold, citing declining margins and rising liabilities. Arete upgraded it to Buy with a $190 price target, while Jefferies lowered its price target to $225 but maintained a Buy rating. Sentiment is cautious overall.
