Tuesday Turnaround: Alibaba's a No-Go
Happy Tuesday.

Is it Friday yet?

No, but it's never too soon to wonder how close we are to the weekend.

Anyway, Alibaba is sinking so let's focus on that. 

Be Forewarned About Alibaba

TheStreet's Jacob Sonenshine tackled the news

Alibaba Group Holding Ltd. (BABA - Get Report) fell to a 52-week low of $146.73 early Tuesday, Oct. 9, as the stock has cooled off considerably from where it traded last year. At last check Alibaba's midday trading landed the share price at $148.24.

It's quite a turn of events for a stock that hit an all-time high in 2018 when it reached $211.70 a few months ago. Alibaba is now down 30% from its all-time high. The stock is down 19% year-to-date from the $183.65 it was at to start the year.

Sonenshine reported that Alibaba could be getting a headwind from the U.S.-China relationship, which is not currently in the best of conditions.

Add that to the ongoing trade war and...well, need I say more?

These 3 Stocks are so Beat Up, They're Worth Buying

Don't believe me? Don't worry, I wouldn't either. Hey, I'm a journalist!

However, TheStreet's Bret Kenwell takes a dive into the stocks and explains why he believes that iQiyi, JD.com and Alibaba are worthwhile buys for investors. 

iQiyi

Known as "the Netflix (NFLX - Get Report) of China," iQiyi (IQ) went public at $18 per share in March. The stock actually dropped following the IPO, falling to $16 and it took a little time before this one found its mojo. Once it did, though, shares more than doubled in less than a month before topping out in June.

Since then, IQ has been under fire. However, over the last few trading sessions -- while the Nasdaq, S&P 500 and many of its peers were sinking -- IQ was holding pretty steady.

JD.com

JD.com (JD - Get Report) has been pulverized, falling more than 50% over the past few months. That's despite having a relatively low valuation and still strong growth.

Current expectations call for almost 30% revenue growth this year and 25% growth in 2019. While forecasts do call for a 22% decline in earnings this year, they are expected to more than double in 2019. Plus, how much of that is already priced in with the more than 50% decline in the stock price?

Alibaba

The prior support area of $165 to $170 has clearly turned into resistance for Alibaba ( BABA - Get Report) , the king of e-commerce in China. It doesn't help that founder and CEO Jack Ma is stepping down from his role amid a tough time for the stock.

While Alibaba stock hasn't seen the $145 to $150 area in more than a year, doesn't mean it won't act as support. At least on its first initial test.

You should really look at Kenwell's full piece though, his deep dive is pretty thorough, if I do say so myself.

Jim Cramer is Concerned About the Markets

"Call me concerned," Cramer told TheStreet about the markets. 

Cramer also discussed how he feels about Jay Powell's most recent comments. 

I don't want to spoil the interview, so I'm gonna leave you with that.

And don't forget, earnings season officially kicks of this week, the first big companies to report will be JP Morgan (JPM - Get Report) , Citigroup (C - Get Report) and Wells Fargo (WFC - Get Report).

That's a wrap, catch y'all later. 

 

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