Nasdaq BABA Alibaba

This year has been quite brutal for Chinese stocks. Delisting concerns, slowdown in the Chinese economy, supply chain disruptions triggered by COVID restrictions, regulatory pressures, and the tension between the U.S. and China have dragged down Chinese stocks. Amid the ongoing uncertainty due to COVID fears in China, we used TipRanks’ Stock Comparison Tool to place JD.com ( NASDAQ:JD ), Alibaba ( NYSE:BABA ), and Li Auto ( NASDAQ:LI ) against each other to pick the most attractive stock. JD.com (JD) Stock JD.com, one of China’s leading e-commerce retailers, generated accelerated revenue growth in Q3 2022 after reporting its slowest year-over-year revenue growth of 5.4% in Q2. The company’s Q3 revenue increased 11.4% to RMB 243.5 billion ($34.2 billion). Furthermore, adjusted earnings per American depositary share (ADS) nearly doubled to RMB 6.27 ($0.88). JD’s earnings easily topped expectations, but revenue fell short of estimates. Operating efficiency and cost discipline fueled JD’s strong Q3 earnings. Annual active customer accounts grew 6.5% to 588.3 million at the end of Q3, mainly due to the net addition of more than 10 million active users in the company’s core retail business. The company continues to focus on improving the profitability of JD Logistics, its second-largest division after JD Retail. In Q3, JD Logistics’ revenue grew 39%, and the division swung to an operating income of RMB 253 million compared to an operating loss of RMB 727 million in the prior-year quarter. Is JD Stock a Buy? Following the Q3 print, Citi analyst Alicia Yap increased the price target for JD.com stock to $90 from $85 and maintained a Buy rating. The analyst noted that JD’s management expects to sustain the improved profitability generated through efficiency and lower costs. Yap believes that JD remains well positioned to deliver reaccelerated revenue growth and active user count once the COVID-19 restrictions fade away. On TipRanks, JD stock earns a Strong Buy consensus rating with 12 Buys versus one Hold. The average JD stock price target of $79.54 implies nearly 42% upside potential. Alibaba (BABA) Stock E-commerce giant Alibaba’s revenue grew 3% to RMB 207.2 billion ($29.1 billion) in the fiscal second quarter (ended September 30, 2022) after falling marginally in Q1 FY23 (BABA's first quarterly revenue decline since it went public). That said, Q2 revenue lagged analysts’ estimates. The slowdown in the Chinese economy, COVID-19 resurgence, and currency headwinds impacted the top-line growth in the quarter. Nonetheless, the company’s adjusted earnings grew 15% to RMB 12.92 ($1.82) per ADS and surpassed estimates, thanks to cost efficiency measures. While Alibaba’s Fiscal Q2 performance reflected the resilience of its business model, concerns about deceleration in the e-commerce business remain. Aside from the pressure on Alibaba’s e-commerce business due to rising competition and macro challenges, the slowing growth rate of the cloud computing business is also worrisome. Alibaba’s cloud computing business is considered to be a key driver of its future growth. In Fiscal Q2, the Cloud segment’s revenue increased 4% compared to 10% growth in Fiscal Q1. Is Alibaba a Buy Right Now? Following the Q2 results, UBS analyst Jerry Liu lowered his price target for Alibaba stock to $135 from $140 but maintained a Buy rating. Liu views Alibaba as one of the several companies that are poised to benefit from macro improvement. He feels that Alibaba stock is a “value play” at a forward P/E (price-to-earnings) multiple of 9. Nonetheless, Liu cautions that investors should expect growth to decelerate in Fiscal Q3 before improving next year. Overall, Wall Street’s Strong Buy consensus rating for Alibaba stock is based on 15 unanimous Buys. The average BABA stock price prediction of $133.73 suggests 66.2% upside potential from current levels. Li Auto (LI) Stock Li Auto and other Chinese electric vehicle (EV) makers have been significantly impacted by COVID-induced supply chain bottlenecks. Earlier this month, Li Auto reported a 31.4% year-over-year rise in its October deliveries to 10,052 vehicles. Nonetheless, October deliveries declined nearly 13% compared to September. Li Auto is optimistic about future growth based on its portfolio of innovative vehicles. It is experiencing robust demand for its L9 SUVs since deliveries for this model began on August 30. On November 10, the company officially commenced deliveries of its premium six-seater SUV, the Li L8. Li Auto is now gearing up to start the deliveries of the Li L7 SUV in Q1 2023.  Is Li Auto Stock a Good Investment? Morgan Stanley analyst Tim Hsiao noted that Li Auto’s October sales were in line with market expectations and reflected the company’s strong execution despite the continued shortage of components. Hsiao added, “Meanwhile, stable deliveries of L9 hovering around 10k for the second consecutive month should ease market concerns over slowing L9 demand and underpin volume upside into Nov/Dec when contribution from L8 starts kicking in.” Hsiao reaffirmed a Buy rating on Li Auto stock and a price target of $35. Li Auto scores a Strong Buy consensus rating based on three unanimous Buys. The average LI stock price target of $41.33 suggests 131.2% upside potential.   Conclusion The slowdown in China’s economy and the uncertainty surrounding the COVID-19 situation continues to impact investor sentiment about Chinese stocks. Nonetheless, Wall Street remains bullish on JD, Alibaba, and Li Auto. Both JD.com and Alibaba are well-established players, and analysts expect these e-commerce giants to rebound once the near-term headwinds diminish. Currently, analysts see the pullback in Li Auto as a great opportunity to buy this growth stock and gain exposure to the rapidly expanding EV market. They estimate higher upside potential in Li Auto than the other two stocks.   Disclosure     

Wall Street's main indexes were set to open lower on Monday as COVID-19 flare ups in China reignited concerns about slowing growth, while Disney shares jumped as investors cheered Bob Iger's surprise comeback as chief executive.

U.S. stock index futures declined on Monday as COVID-19 flare ups in China added to concerns about slowing growth, while Disney shares jumped as investors cheered Bob Iger's surprise comeback as chief executive.

Alibaba Group Holding's (NYSE: BABA) stock popped 8% on Nov. 17 after the Chinese e-commerce and cloud leader posted its latest earnings report. For the second quarter of fiscal 2023, which ended on Sept. 30, its revenue rose 3% year over year to 207.2 billion yuan ($29.1 billion

Alibaba Group Holding Limited BABA reported second-quarter fiscal 2023 non-GAAP earnings of $1.82 per ADS (RMB 12.92), which surpassed the Zacks Consensus Estimate by 9%. The figure increased 15% from the year-ago fiscal quarter’s reported figure in RMB terms.

What happened Shares of Chinese internet stocks Alibaba (NYSE: BABA), Tencent Music Entertainment (NYSE: TME), and Huya (NYSE: HUYA) rallied this week, up 19.1%, 35.1%, and 23.9%, respectively, through Thursday trading.

Chinese e-commerce giant Alibaba Group BABA reported second-quarter fiscal 2023 before the opening bell on Nov 17, wherein it beat the Zacks Consensus Estimate for earnings but lagged on revenues.Driven by the earnings beat, shares of Alibaba jumped 7.8% to close the day,

The NASDAQ 100 Pre-Market Indicator is up 103.77 to 11,780.63. The total Pre-Market volume is currently 33,946,810 shares traded.The following are the most active stocks for the pre-market session: ProShares UltraPro QQQ (TQQQ) is +0.67 at $22.53, with 6,728,337 shares traded. T

The market was riding high late last year, when things came crashing down. Since then, macroeconomic conditions drove the broader market indexes -- including he Nasdaq Composite -- deep into a bear market, unparalleled in recent history. The tech-focused index has been hardest hi

Tencent (OTC: TCEHY) posted its third-quarter earnings report on Nov. 16. The Chinese tech giant's revenue fell 2% year over year to 140.1 billion yuan ($19.7 billion), which represented its second consecutive quarter of declining revenue since its IPO in 2004. Its net profit ros

Buying stocks right now can seem like a bad idea given that the stock market isn't on firm footing, with the S&P 500 down 16% this year. But the volatility in 2022 can create some attractive buying opportunities for long-term investors.

Alibaba ( NYSE:BABA) recently delivered  better-than-expected September quarter earnings. Following the announcement, this Chinese internet giant’s ADS (American Depositary Share) closed 7.8% higher on November 17. However, challenges stemming from macro weakness in China, regulatory headwinds, and a slowdown in its growth continue to persist, which is why investors should be cautious before investing in BABA stock.  Let’s Get Into the Details Alibaba’s top line inched up 3% in the September quarter. However, what catches the eye is the 7% decline in customer management revenue. A drop in customer management revenue reflects softer consumption trends and increased competitive headwinds. Also, its cloud segment’s revenue slowed to 4%, reflecting weak demand for its cloud offerings in the domestic and international markets. During the conference call, Daniel Zhang, Alibaba’s CEO, said that the macro environment would determine the future of Alibaba and other companies operating in the consumption space. Given the uncertainty and ongoing weakness in domestic consumption trends, Alibaba’s top-line growth could remain pressured.  In addition to the slowing growth and macro weakness, increased regulations are a big concern for Chinese stocks, including Alibaba.  According to our data, legal and regulatory risks are one of the top risk categories for BABA. For context, our Risk Factors tool shows that BABA’s legal and regulatory risks accounted for 27.3% of its total risks. What’s alarming is that BABA’s legal and regulatory risks are significantly  higher than the sector benchmark of 15.2%.   Is BABA Stock a Buy, Sell, or Hold? BABA stock has  corrected about 50% in one year, and analysts are bullish on its prospects. It has received 10 unanimous Buy recommendations for a Strong Buy consensus rating. Meanwhile, analysts’ price target of $133.20 implies 58.1% upside potential. Bottom Line   While Wall Street is bullish about BABA stock, several analysts, including  Bo Pei of US Tiger Securities,  Gary Yu of Morgan Stanley, and  Youssef Squali of Truist Financial, have recently lowered their price targets.  Further, Alibaba stock is trading at a forward Enterprise Value/EBIT multiple of 13.6x, which is higher than the sector median of 12.8x, making it unattractive on the valuation front, especially as the growth has slowed.  Overall, investors should take caution and wait for domestic consumption trends to improve before investing in BABA stock. Disclosure 

Image source: The Motley Fool.

What happened Despite a down day for the broader market, several Chinese stocks ripped higher today after recent earnings results.

E-commerce stocks have been on the rise in recent years as more and more consumers turn to the internet for their shopping needs. While brick-and-mortar stores still have a place in the retail landscape, e-commerce offers a convenient, affordable alternative that is increasingly

U.S. stock indexes were set to open lower on Thursday as mixed economic data and hawkish comments from a Federal Reserve official spurred concerns that the central bank will not tone down its aggressive stance on interest rate hikes.

Consumer stocks were declining pre-bell Thursday with the Consumer Staples Select Sector SPDR Fund (XLP) down 0.6% and the Consumer Discretionary Select Sector SPDR Fund (XLY) retreated 1.9%.

The NASDAQ 100 Pre-Market Indicator is down -144.82 to 11,554.27. The total Pre-Market volume is currently 64,840,603 shares traded.The following are the most active stocks for the pre-market session: ProShares UltraPro QQQ (TQQQ) is -0.81 at $21.22, with 7,713,388 shares traded

U.S. stock index futures were lower on Thursday as investors assessed mixed economic data for clues on the path of future rate hikes by the Federal Reserve, while Kohl's shares fell after the department store chain withdrew its annual forecasts.

The operator of Canadian coffee chain Tim Hortons in China said on Thursday it had forged a two-year partnership with Alibaba Group's grocery chain that will see the two launch co-branded products.