Alibaba continues to suffer the effect of the Chinese government, which was also seen with particular virulence last Friday when the value lost above 8% in the market, in a new blow after blow of those that the e-company continues to receive from China. commerce.
The latest announcement from the Chinese travel giant sponsored by Alibaba Didi Chuxing on his departure from the New York Stock Exchange in brief dates to be re-listed on the Hong Kong Stock Exchange. The tensions seem to have become untenable, since the SEC, the United States Securities and Exchange Commission seek the company to improve its levels of transparency, as it had announced that Didi had to communicate more financial data to regulators to face the exclusion on the NYSE, to which the company, at the behest of the Chinese government, has anticipated.
And Alibaba, also faces such problems, while, from Bloomberg, it is indicated that Chinese techno are in the eye of the hurricane for him possible use of offshore companies of tax havens to circumvent the property rules that prevail in your country and listed in markets such as New York. And China, according to the media, would pressure them not to be listed abroad.
A whole new tangle that continues to alienate investors who see how Alibaba is placed at all-time trading lows, with the loss of more than half a billion of capitalization in the last thirteen months, due to its stock market drain.
In its quotation graph we see how in the value the falls prevail, in all periods, with cuts of 16% in the last five sessions, which border on 30% in the last month. The falls in the quarter reached 34.3% and so far this year, its losses in the American market are already close to 52% annually.
As firms are rushing to cut back on their value recommendations. From Goldman Sacks they reduce their target price to $ 215 from the previous 252 although maintains the purchase advice on its shares.
And it is that the price drop, lead in value, has risen substantially, despite the reductions in its PO, its potential in the market up to 74% is the case of the mean of TipRanks which places its median target price at $ 212.48 per share, While of the 23 analysts that follow the value, 21 choose to buy and two to maintain, understanding that now its price is an opportunity to enter the value.
From Susquehanna, analyst Shyam Patil cuts his target price on Alibaba by no less than 35%, up to $ 200 from the previous 310, while, from JPMorgan, Alex Yao also cuts his PO on the value from $ 255 per title prior to $ 210 today. If we look at Morgan Stanley, its cut is even greater to 180 dollars from the previous 220 with a fall of 25.3% although it will overweight the value in the market.
Investment Strategies premium indicators place Alibaba with un resounding 0 out of 10 possible points with everything negative: the downward trend in its two aspects, the negative total moment, both slow and fast for the value, the volume of business, in the medium and long term decreasing, and increasing its volatility in the medium and long term as well.
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