While Amazon.com, Inc. (NASDAQ:AMZN) is currently a dicey stock, Alibaba Group Holding Ltd (NYSE:BABA) is potentially on the rise, the Fast Money traders said in a segment of Stock Pops & Drops on CNBC.
Steve Grasso is optimistic of Alibaba Group Holding Ltd (NYSE:BABA). He said that Jack Ma, the company’s founder, is a student of the market and that he really went to school on the market and on this type of stocks.
“Everything he says is working. Mobile users is up. Mobile revenue is up – $32 billion compared to $9 billion just a year ago. I think this stock can climb even higher,” Grasso said.
Owner of one of the most valuable brands in China, Alibaba Group Holding Ltd (NYSE:BABA) is fresh off of reporting its first quarterly performance since becoming a publicly traded company on the New York Stock Exchange.
Alibaba Group Holding Ltd (NYSE:BABA) reported a $494 million GAAP net profit for the third quarter, down 39% from its performance in the same quarter last year, and below analyst expectations. However, the company explained that it took a one-time charge connected to share bonuses to employees for its IPO.
As a result of the positive performance, Alibaba Group Holding Ltd (NYSE:BABA) has earned upgrades from firms such as Morgan Stanley, which raised its price target to $118.10 from $111.10 with a rating of “Overweight”.
As for Amazon.com, Inc. (NASDAQ:AMZN), the Fast Money traders did not paint a rosy picture for the company.
According to Guy Adami, Amazon.com, Inc. (NASDAQ:AMZN), they predicted, experience a trough in its recent massive drop last month. However, he also mentioned that David Einhorn is hinting that he may short the stock.
“Now this stock gets very, very dicey. The chart looks aweful. I think it wants to test that level we saw on October 24th,” Adami said.
Adami was referring to a big drop in the value of the Amazon.com, Inc. (NASDAQ:AMZN) stock last month where it closed at $287.04 from a previous day’s close of $313.18.
That was shortly after the company reported a net loss of $437 million for the third quarter of 2014, an increase in loss from a net loss of $41 million in the same quarter a year ago. That is despite net sales rising 20% to nearly $21 billion.
John Griffin’s Blue Ridge Capital is an Amazon.com, Inc. (NASDAQ:AMZN) investor. By June 30, the firm owned 810,000 shares in the internet commerce giant.