Recovery prospects don't buy Wall Street still bearish on Alibaba

Photo: CFP

Recent news out of Alibaba, has begun to make investors feel disoriented.

Spread out some bad news, especially on Tuesday, online shopping platform in the company's third quarter revenues fell short of expectations, warning signs for investors released.

But there is some good news. Last week, Ali announced the upcoming expansion in sports business. Meanwhile, there are reports, first and second-largest individual shareholder in Alibaba-the Chairman of the Board of Ma and Vice President Tsai currently has no plans to sell shares, the two shares is planning to seek mortgage financing.

Jack Ma, Alibaba Group Chairman of the Board of Directors and Vice Chairman Tsai. Photo: network Recovery prospects don't buy Wall Street still bearish on Alibaba

On Wednesday, Yahoo announced that its tax plan to spin off a large number of Alibaba has recently brought to United States Internal Revenue Service rejected.

News, Ali shares that rose to 5% per cent. (This week's trading day on Thursday, Ali shares also fell 0.4%. ) Following the first half of the week's stock market turmoil after record lows, despite Ali, two Wall Street analysts downgraded the stock (NYSE:BABA) target on the stock, the stock is ushered in a jump in prices, is a good sign.

However, even though Ali's shares in the stock markets downturn of the flood tide up, one thing has never changed, that is, Wall Street still badmouth about the Alibaba Group's revenue growth this year.

Ali, since late July after the earnings call, long-term concerns Ali stock analysts had sharply reduced expectations for the aliying collection. Biggest reduction occurred in the past month.

Analysts for the second half of company valuations have fallen to an average of $ 1.45 a share, a month ago, that figure was $ 1.55 a share, June's valuation more than 1.58 dollars per share.

Today, Pacific Crest and Cantor Fitzgerald two investment banks have maintained a buy rating on Ali's constant, but they also have Ali stock target price downward, expects its shares will continue to fall.

Youssef Squali, analyst at investment bank Cantor Ali a target share price of $ 95 a share from $ 88 cents per share, from Pacific Crest analyst Cheng Cheng "do it harder", that number directly from us $ 94 per share dropped to below $ 80 per share.

According to past experience, Wall Street stock analysts rarely new overhaul of large high-tech company stocks listed. Investment banks because they play often depend on underwriting technology initial public offering (IPO) and subsequent shares business and earn big profits. Analysts and company executives to rival that it hardly.

However, frequent adjustments to Ali's share price on Wall Street estimates, fewer people optimistic about Alibaba shares, also for a stock, and wanted to thoroughly in Wall Street's eyes, "victory", there is still a long way to go.

Alibaba's stock price if you want to get Wall Street's "bullish", there is still some way to go. Photo: network

If the two executives Ali Ma and Tsai chose not to sell shares after the IPO lockup period in mid-September, but continue to collateral stock financing plans into practice, may be able to help Wall Street to rebuild confidence in the Ali.

More retail investors, the industry generally can more accurately grasp the selling timing, because they have not found in retail insight and foresight.

Alibaba's two major shareholders-Yahoo and Softbank, Ali, has promised not to sell their shares. Yahoo had said in a securities filing, the Federal Reserve is likely to ultimately approve its tax-free spin-off of heavy Alibaba. However, according to rumors, United States Internal Revenue Service, a message informed Yahoo, its tax plan to split shares have been rejected, and this makes everything more complicated and confusing.

What's more, this quarter at the end of June, Alibaba's total revenue growth below the online transactions (often called the value GMV) growth rate, which showed increased competition within the Internet industry has led to Ali's net revenue decrease in the per transaction. Online sales (GMV), transaction volume of online shopping platform, is an important indicator of measure online shopping revenue.

Alibaba has said actual online sales revenues in the third quarter of this year the company is lower than expected, analysts along with the estimated value of the Group's total revenue and its share price continued to fall.

Ali shares continue to be bearish in the short term, that is from the above as a result of many factors.

(Translation: Xu garden)

Source: today, United States

Original title: Wall Street still sour on Alibaba's shares