Alibaba shares: Financial experts disagree after cancellation of cloud spin-off - analysis and recommendations

Alibaba shares: Financial experts disagree after cancellation of cloud spin-off - analysis and recommendations

According to a report by www.deraktionaer.de,

After the e-commerce giant recently presented company figures and rejected the spin-off of its cloud computing business, the shares lost around ten percent last week. Analysts from Morgan Stanley, Bernstein and Barclays have different assessments of this event.

Morgan Stanley removed the stock from its top pick list due to uncertainty surrounding Chinese consumer behavior and lowered its price target from $125 to $110. Bernstein analysts echoed Morgan Stanley's sentiments and lowered the price target to $93 from $100 due to the cancellation of the spinoff and weaker revenue growth. In contrast, the British investment bank Barclays welcomed the rejection and sees added value for investors thanks to announced dividend payments. Barclays maintains an “Overweight” rating with a price target of $138.

These different opinions signal uncertainty in the market and could lead to increased volatility in share prices. Investors should wait for a bottom to form before entering, as it will take some time for the market to regain confidence in the group. The announced share buybacks and dividend announcements could make it affordable in the long term. With a target price of 110 euros and a stop of 59 euros, Alibaba is recommended by DER AKTIONÄR.

It is important to continue monitoring the market to understand investor reactions to recent developments at Alibaba.