BABA stock will go up tomorrow


Aime
The probability of Alibaba's stock price increasing tomorrow is not high. Here's an analysis to support this conclusion:
- Current Trend and Forecasted Trends: The current trend for Alibaba's stock is bearish, with a duration of 29 days. The continuation probability for this trend is 50%, which means there is an equal likelihood of the trend continuing or reversing. Additionally, the unconditioned trend shows that there is a 50% probability of the stock price moving within the next 18 days, which does not strongly suggest an upward movement.
- Market Sentiment and Recent Performance:
- Alibaba's stock has experienced volatility, with significant selling pressure due to uncertainty over China's stimulus measures and a fine for monopolistic practices1.
- Despite positive sentiment after China loosened lending standards and Alibaba announced new AI models, the stock has been under pressure1.
- The stock showed a slight revenue beat, but this was not enough to fully recover from the decline, and it faced further challenges with a slowdown in revenue growth1.
- Analyst Expectations and Earnings Report: The expected EPS for the upcoming quarter is $2.05, which represents a 4.2% fall2. Although revenue is expected to rise, the overall outlook is subdued, with analysts reporting a 3% year-over-year decline in EPS3.
- The earnings report for the second quarter is expected to show a 4% year-over-year increase in revenue, which is a modest growth rate23.
- Options Market Activity: There has been significant options activity, with big players predicting a price window from $80.0 to $115.0 for Alibaba Gr Hldgs during the past quarter4. This suggests that while there is some optimism, it is not overwhelmingly bullish.
- Competitive Landscape: Alibaba is facing increased competition, particularly from PDD, which has been rapidly growing5. This competitive pressure could impact Alibaba's stock price negatively.
In conclusion, while there are some positive signs, such as the announcement of new AI models and the completion of a regulatory process, the overall sentiment and analyst expectations do not strongly suggest that Alibaba's stock will go up tomorrow. The bearish trend, the expected subdued earnings, and the competitive pressures all point to a more neutral or potentially negative outlook for the stock.
Source:
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1.
Alibaba Stock Strengthens Near Major Support Level, But ...
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