Alibaba Stock (NYSE:BABA)
As Beijing’s new foreign minister stated his desire to strengthen relations with the United States, top Chinese internet companies like Alibaba (NYSE:BABA), Pinduoduo (NASDAQ:PDD), and Tencent Holdings (OTCPK:TCEHY) began 2023 with strong gains.
Investors showed their support for many of China’s top tech leaders at the same time that Qin said he hoped for better relations with the US, which can be attributed to Chinese military technology and continuous supply chain slowdowns affecting goods created for tech giants like Apple (AAPL) and Intel (INTC). Investors showed their support for many of China’s top tech leaders at the same time that Qin said he hoped for better relations with the US.
Pinduoduo (PDD) increased by more than 6%, Tencent Holdings (OTCPK:TCEHY) increased by about 5%, and Alibaba (BABA) gained 5.6% to start the year. Other winners included JD.com (JD), up 3.7%; Baidu (BIDU), up almost 6%; NetEase (NTES), up 6.3%; and Weibo (WB), up 7.5%.
Additionally, rising by over 6% was the KraneShares CSI China Internet ETF (KWEB). Alibaba (NYSE:BABA), a Chinese internet and e-commerce giant, lost more than $80 billion in market value the year before.
Is Alibaba (BABA) Seen as a Good Investment?
Analysts on Wall Street are often relied on by investors to help them decide whether to buy, sell, or hold a stock. When sell-side (sometimes called “sell-side”) analysts change their ratings, the news about it often affects the price of a company. But do they truly matter?
Before we talk about the validity of brokerage recommendations and how to take advantage of them, let’s have a look at what these Wall Street titans have to say about Alibaba (BABA).
Alibaba presently has an average brokerage recommendation (ABR) of 1.04, computed based on the actual recommendations (“Buy”, “Hold”, “Sell”, etc.) issued by 12 brokerage firms, on a scale of 1 to 5 (“Strong Buy” to “Strong Sell”). ABR of 1.04 roughly falls between “Strong Buy” and “Buy”.
Eleven are “Strong Buy” and one is “Buy” out of the 12 recommendations that make up the current ABR. 91.7% and 8.3% of all recommendations are “Strong Buy” and “Buy”, respectively.
Alibaba; What Price Is Next For The Stock?
Featured Image – Pexels © Pixabay
Author Jowi Kwasu 
