Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Traders Are Watching Alibaba Group Holding Ltd (BABA)

Alibaba Group Holding Ltd (NYSE:BABA) is in the spotlight today after Aaron Kessler of Raymond James reiterated his ‘Strong Buy’ and $138 price target after meeting with Alibaba’s investor relations head. The analyst is bullish in part due to his expectation of continued robust e-commerce growth coupled with continued strong cloud sales growth. Given Alibaba’s reasonable forward P/E ratio of 25.28 and its wide moat, the analyst also likes Alibaba’s valuation.

Separately, many traders are paying attention to Alibaba due to today’s Trump-Xi meeting. President Trump has been famous for his protectionist policies on the campaign trail and shares of Chinese related stocks could take a hit if Trump follows through. On the other hand, meetings between the heads of nations have generally been cordial in the past, and Chinese stocks could bounce if there is no negative news that comes out and sentiment improves.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

The smart money may have missed out somewhat on Alibaba’s recent rally. According to our numbers, 86 elite funds were long Alibaba Group Holding Ltd (NYSE:BABA) at the end of December, down 18 funds from the previous quarter.

The Bottom Line

Alibaba Group Holding Ltd (NYSE:BABA) shares are in the spotlight due to analyst commentary, today’s Trump-Xi meeting. For more reading, check out ‘10 Best Selling Products On Alibaba‘.


Follow Alibaba Group Holding Limited (NYSE:BABA)
Trade (NYSE:BABA) Now!
Alibaba Group Holding Ltd (NYSE:BABA), Logo, big sign, People taking photos, offering, ipo, group, stock

Christopher Penler /

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
This is a FREE report from Insider Monkey. Credit Card is NOT required.