Alibaba (BABA) is an impressive business.
It's one thing to read about the Chinese e-commerce and media business in Wall Street research notes, but entirely something else to study the business on your own. And boy, has Wall Street been bullish on Alibaba's prospects.
Take Needham's Kerry Rice, for example, who chimed in following Alibaba's incredibly bullish two-day investor conference last week: "Big data was a key theme. With +500M annual active consumers on Alibaba's platforms consuming content and conducting transactions, the company is able to garner significant intelligence about customers. Leveraging these data insights, Alibaba can ehnance the consumer experience by providing products, services, and content that are personalized to each consumers' preferences. Ultimately, management expects the higher consumer engagement to drive traffic growth and raise conversion, compelling merchants and brands to allocate more of their marketing spend to Alibaba's platforms."
A post shared by Sajam Obrazovanja EDUfair™ (@staupisujes) on
Preach, Kerry. Having studied Alibaba for a group project (more on that later this week...), it sure looks like Alibaba is being underestimated by Wall Street. It sounds crazy, given the strong price targets out there. But, the reality is that most stock analysts lack the deep understanding of what Alibaba Group Holding is trying to do -- and what it has going on beneath the surface. Think game-changing things. In turn, they are very likely to see their forecasts prove too conservative.
Hat tip, Jack Ma.
Alibaba was up 0.1% to $136.68 at Wednesday's close.
What's Hot on TheStreet
Respect the stock charts: Don't feel too relieved by volatile tech name Nvidia (NVDA) finishing in the green on Monday June 12 after a violent selloff.
Nvidia Corporation underwent a "key reversal" on Friday that could send the stock plunging another 36%, BMO technical analyst Russ Visch said in a new note. Visch points out that normally, these pullbacks tend to lead to the stock falling back to its 200-day moving average. In the case of Nvidia, the 200-day moving average is $96.70, or $36% below Monday's closing price of $149.97. "Considerable downside risk exists here," said Visch.
On Friday June 9, shares of Nvidia were off to another big rally, hitting new all-time highs of $168.50 following an analyst pontificating that the stock could surge to $300. But the party abruptly ended Friday afternoon and continued into most of Monday's trading session. The reversal in one of the hottest tech stocks around spooked the market, pressuring shares of other high-flyers in the space such as Amazon (AMZN) and Apple (AAPL) .
Apple and innovation: The reality is that the public and would-be buyers of Apple's stock harbor greater doubts about Apple's ability to innovate than in many years, reports TheStreet. Apple Inc did nothing to quiet those concerns by introducing its new voice-activated speaker, sources explained to TheStreet.
Yet another Tesla bull: A new day, yet another Wall Street firm with some bold proclamations on electric car maker Tesla (TSLA) . Tesla Inc shares were upgraded to buy from hold on Tuesday by Berenberg, citing the company's "disruptive potential" in the auto industry. The company could have a "near-monopolistic" opportunity to gain market share and outperform rivals, Berenberg writes.
The firm sees Tesla shares surging about 30% from Monday's closing price to $464.
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