Alibaba Group Holding Ltd (NYSE:BABA) finally surpassed an initial sales estimate of $8.2 billion for the Singles Day event although it was not enough to stop the stock from sinking in the market. CNBC’s Timothy Seymour believes the stock could rise even higher as the company continues to operate as a monopoly back at home.
“This is a stock I still hold long. I am not surprised to see some pullbacks although I did say yesterday I thought they were going to exceed this Singles day numbers. They did, and one of the things you are hearing from merchants is that these guys feel especially in the smaller cities and other parts of mainland you have to use Alibaba. It is a branding platform, “said Mr. Seymour
Alibaba Group Holding Ltd (NYSE:BABA) plummeting in the market after the Singles day event came on the heels of too much expectations on the performance according to CNBC Melissa Lee. CEO, Jack Ma attributes the 4% decline to mounting pressure in terms of expectations. The singles day event, on the other hand, did not go well for American companies that participated in it, because it is predominantly a Chinese event.
Alibaba Group Holding Ltd (NYSE:BABA) has already affirmed commitments to make the event a global affair awaiting to see how that will turn out as the company continues to pursue international markets. A number of analysts still remain confident of the stock soaring especially with the holiday season frenzy where the company could register increased sales
Trading Yahoo at the expense of Alibaba remains the perfect play in this case according to CNBC’s Scott Wapner. Alibaba has already shown indication that it would be willing to buy the remaining Yahoo’s stake a move that could be of benefit to Yahoo! Inc. (NASDAQ:YHOO) stockholders. The analysts also argues that chances are high that Alibaba Group Holding Ltd (NYSE:BABA) could come down aggressively than Yahoo in the long term.
The 4% sell off after the singles day event could, on the other hand, be a perfect entry point for bullish investors who would wish to gain on the long-term.
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW