the BABA stock is in a very interesting spot right now last week
Alibaba reported amazing earnings but the BABA stock price dropped probably
for two reasons: number one the good old "buy the rumor sell the news" thing and number
two the US Senate passed a bill last week they'll raise a question that
whether some Chinese companies would be delisted from the US exchanges in
today's video I'm going to address some of the questions I've been getting the
most from you guys including what will happen to BABA if the u.s. decides to
kick some of the Chinese socks out of its exchanges
will Baba be among them? and will you still be able to trade them? also how is
the COVIT 19 pandemic treating the baba stock can we expect more downfalls? can
the baba stock make you a millionaire? we're going to queue in the intro and dive
into the baba stock analysis from the five points of my signature Invest Diva
diamond analysis that analyzes any asset from five points: Fundamentals
technicals, market sentiment, how does it fit with your risk tolerance, and overall
does it make sense to your investment portfolio. we're now going to queue in
the intro and while we do that head over to the comments section and type in your
favorite Chinese stock... let's go!
hey guys I'm Kiana Danial three-time author and the founder of the Invest
Diva movement the March to jump on to take control of your financial future
and to make your money work for you. the Ali Baba stock has actually long been
on my portfolio along with some other Chinese stocks that I routinely cover
for our premium investing group members (PIG) members if you haven't
already and would like to see how you can get a three months free membership
to the premium investing group go ahead open up a new tab and type in
learn.investdiva.com/yes and register your spot for my free make your
money work for you master class I'll also add a link in the description area
of this video now let's get to Alibaba. Alibaba is the world's largest online
and mobile commerce company it operas China's most visited online marketplace
including Taobao which is consumer to consumer and team all which is business
to consumer now how does Alibaba actually make money last quarter Alibaba
generated eighty two percent of its revenue from its core commerce business
which includes its e-commerce market places and it's Brick and Mortar stores as
well as the stakes and some of the logistics most of these businesses are
based in China but Aliexpress is leading the marketplace in Europe and there are
some other parts of Alibaba like trend deal that is based in Turkey lazada
serves Southeast Asia but the core commerce business is Ali Baba's only
profitable business then we get to the good stuff that are actually more
long-term in my opinion but so far Ali Baba's cloud computing unit generated
11% August revenue last quarter and that cloud controlled 46 percent of China's
cloud infrastructure market at the end of 2019 if you want to compare it to
something it's closest competitor in China is 10 cent and their cloud held an
18% share overseas Alibaba is expanding it's cloud platform to compete with the
massive Amazon Web Services as we go down the ladder of the ways Alibaba
makes money 5% of its revenue comes from its digital media and entertainment
business and that includes its media streaming platforms movie studio web
browser and shemot search engine none of these platforms leave their respective
markets and the kings of those categories are Tencent tense and music
and Baidu last but not least 2% of alibaba's revenue comes from innovation
initiative businesses like smart speakers online games and other minor
products wish in the long run could become something big for Alibaba now
let's take a look at Ali Baba's short-term challenges last quarter their
core commerce revenue rose 19 percent but that marked a significant slowdown
from the previous quarter and that was because of COBIT 19 meanwhile in the
u.s. the trauma administration is considering a range of sanctions on
Chinese officials and the businesses and financial institutions over babys effort
to crack down on Hong Kong and this could also take a hit on Baba to answer
your question what happens even if Baba is the illicit from the stock exchange
the short answer is nothing if you already hold Baba you are still
considered a shareholder of Baba your broker has to go and find Alibaba in a
different marketplace meanwhile its price could take a hit and that could be
something that you want to keep an eye on now again in my opinion it's very
unlikely that Baba is going to be among the Chinese thoughts that is going to be
delisted from the stock exchange this trauma administration decision is
probably going to impact smaller Chinese stocks okay now we're gonna get into the
juicy stuff how does Ali Baba and the Baba sock look long-term and can it make
you a millionaire now first off I'm not a financial advisor and my opinion just
like anybody else's opinion is just an opinion so please take it with a grain
of salt but my humble opinion is that China is on its way to lead the global
economy last of them are Alibaba outline its plans for the Knicks
five years and that was to serve over a billion Chinese consumers and facilitate
over 10 trillion won which is 1.4 trillion dollars but that's just China
there is also a very good chance that globalisation will be a key growth
driver for Alibaba in the years to come Ali Baba's desktop and mobile
monetization rates have generally been on an upward trend in the past few
quarters which indicate that sellers are becoming increasingly dependent on Ali
Baba's marketplaces to reach Chinese consumers all right now we're gonna take
a look at the market sentiment and finally we'll move on to technical
analysis to see what prices are optimal for buying baba if it fits your
portfolio and when you can consider taking profit bands ago we can see that
a lot of hedge funds and banks like Nomura I have maintained their current
buy position for Alibaba Nomura is targeting 249
we got CFRA targeting 216 and another one targeting 241 the overall sentiment
is neutral over here Alibaba doesn't pay a dividend and even though it has huge
potential for growth it may not be suitable for those who are looking to
invest in stocks that pay them an income now we're looking at Ali Baba's chart
ever since it was listed on a stock exchange back in 2014
Ali Baba has generally moved up but it has been kind of choppy providing us a
ton of buying opportunities every time that it dips down right now is actually
approaching the old time highs again and if history is any indication you can see
that over here in 2017 2018 we had a double top formation which led to a drop
into Ali Baba's talk and now it looks like the price might actually be due for
a similar kind of path we have the old time high-level at 230 and the price
dip down due to COVID is now on its way up and the resistance level and the old
time here remains at 230 as you can see I've added a lot of Fibonacci retracement
levels for when I analyzed Baba for our premium investing group members on
Tuesday morning Ali Baba's stock price remains above
the weekly Ichimoku cloud over here zooming in on the daily chart it actually has
broken above the Ichimoku cloud as well and the pattern kind of resembles the Dow
Jones Industrial Average as a whole as you can see that Dow Jones dropped to
the lows of the COVID and then the price broke above the Ichimoku cloud on the
daily chart now of course the news and the earnings on May 20th had an impact
of a stock price and the price is dropped towards the upper band of the
Ichimoku cloud. this is also a pivot level over here the future cloud is bullish
across the board on the daily chart on the weekly chart and on the monthly
chart so that gives us a good bullish indication over here I have created a
Fibonacci retracement tracing the the latest uptrend from back in August 2018
to the highs of January 2020 now as you can see the strongest Fibonacci
retracement level here at 50% falls at 181 and the next level 61 percent
retracement of 169 both are the levels that Baba visited during COVID nineteen
pullback which probably would have happened anyway regardless of COVID 19
because that was just a technical pullback and the COVID 19
accelerated the pace now we're seeing it bottoming out breaking the webpage to
Michael cloud and the support level remains at 193 so what are some of the
optimal prices to buy Baba looking at the choppiness of baba in the past there
is a good chance that it's price could revisit one of these levels higher
probability would be 193 and 181 but there is also a chance of it revisiting
169 so one way that I go about it is normally to set partial buy limit orders
if you don't have any and start buying at a higher prices and as the price goes
lower I buy more for profit targets again I have used sometimes you trace
non levels and these are the levels that you can consider taking partial profit
if you're not planning to hold on to Baba for the long term again because
Baba's doesn't pay dividend payments you could consider taking profit earlier as
long as it makes for your taxes always remember that
keeping your stocks within a year will potentially lead to you paying more
taxes but if you're really scared that Baba is going to get delisted from the
New York Stock Exchange then you can consider taking profit at 230 of course
because this is a growth stock time is going to be your best friend when it
comes to Baba will it make you a millionaire if you hold on to it long
enough it probably well my opinion there's a low chance of Baba completely
vanishing from a stock market and the company going under so personally I
would just buy the lows now I'd like to hear from you what do you think of
Alibaba stock will you be buying as it goes lower how long will we hold on to
it? head over to the comments section and let me know! as always thank you so much
for tuning in make sure to register you see for my free masterclass by going to
LEARN.INVESTDIVA.COM/YES I can't wait to see you in the chat box! invest
responsibly and remember the only path to true wealth is by making your money
work for you