Chinese multinational conglomerate Alibaba (NYSE:BABA) closed at $83.14 on Monday, marking a modest gain of 0.39%. Despite this increase, the company's performance lagged behind major indices such as the S&P 500, Dow, and Nasdaq, which gained 1.2%, 1.58%, and 1.16% respectively.
Over the past month, Alibaba's stock has experienced a significant drop of 4.52%, which exceeds the losses of the Retail-Wholesale sector and the S&P 500, which lost 1.94% and 3.58% respectively.
Analysts are forecasting Alibaba's upcoming report to show earnings of $2.16 per share, reflecting an annual growth rate of 18.68%. The company's revenue is predicted to reach $31.39 billion, indicating a year-over-year rise of 7.77%.
For the full fiscal year, estimates place earnings at $8.99 per share and revenue at $133.21 billion, translating to growth rates of +13.22% and +5.68% respectively.
InvestingPro Insights
InvestingPro data and tips provide some additional context for Alibaba's current position in the market. The company's market capitalization stands at a robust $210.65 billion, with a P/E ratio of 21.46, reflective of its steady growth potential. As of Q1 2024, the company's revenue growth rate was 5.21%, indicating a steady increase in earnings.
From an InvestingPro Tips perspective, Alibaba boasts high earnings quality, with free cash flow exceeding net income. This is a strong indicator of the company's financial health. Additionally, the company's management has been aggressively buying back shares, showcasing their confidence in the firm's future. Another point worth noting is that Alibaba, a prominent player in the Broadline Retail industry, holds more cash than debt on its balance sheet, a positive sign for potential investors.
For those seeking more in-depth analysis and additional tips, the InvestingPro platform offers a total of 11 tips specific to Alibaba, aiding investors in making informed decisions.
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