Analysis of Alibaba shares: Is the recent sell-off exaggerated? Financial experts comment.

Analysis of Alibaba shares: Is the recent sell-off exaggerated? Financial experts comment.

According to a report by www.deraktionaer.de Alibaba shares also fall after the publication of the quarterly figures. Numerous analysts have subsequently updated their assessments of the Chinese e-commerce giant. Nevertheless, it remains questionable whether the renewed price decline is exaggerated from a fundamental perspective.

Price targets are falling despite buy recommendations

Analysis of Bloomberg data shows that price targets for Alibaba have fallen to a new low following the latest numbers. Although there is no sell recommendation, numerous analysts have lowered their price targets. There are currently 42 buy recommendations and ten recommendations that only advise holding.

Analysts' reactions

Analysts at JPMorgan, Truist, Mizuho and Goldman Sachs have lowered their price targets but maintained their buy ratings. They justify this with reduced estimates based on the quarterly figures, but still consider the stock's valuation to be attractive.

Business figures and outlook

Alibaba's core business recently recorded only two percent growth, while its cloud intelligence business only grew by three percent. Overall sales rose five percent, but net profit attributable to shareholders fell 69 percent.

Potential impact on the market

Alibaba's declining price targets and weak growth could dent investor confidence and lead to further share price declines. However, analysts continue to hope for better times for the company.

Conclusion

Alibaba's share price remains uncertain, and it is unclear when the stock will bottom. Nevertheless, the share price has so far remained just above its correction low. It remains to be seen how the company's further development will affect the market and investors.