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Alibaba (BABA) Earnings Preview

Alibaba BABA

Alibaba (BABA) trades higher for one more day approaching all-time highs as investors await the quarterly earnings report which will be out on August 13. The company expected to show strong growth in the online retail business, and it’s cloud computing sector. The better than expected economic data from China the last two weeks point to a faster than expected economic recovery which will lead to more robust consumer demand for Alibaba’s products and services. Alibaba stock hit an all-time high on July 9, at $268

What Analysts Expect from Baba Earnings 

Wall Street analysts expect Alibaba to report for the quarter ending June 2020 earnings per share of $1.98. The lower estimate stands at $1.61 per share, while the higher estimate is at $2.36 per share. 

On the revenue side, analysts expect BABA to report 21.19 billion. The higher estimate stands at 21.89 billion, and the low estimate for the revenues is at 20.34 billion. 

On the first quarter, BABA reported EPS of $9.20, beating analysts’ estimates of $0.59. The company reported revenue of $114.31 billion also above the expectations of $108.00 billion. The company’s revenue was 22% higher from the previous year driven by substantial revenue growth in China commerce retail segment and strong revenue growth of the cloud computing sector. 

Alibaba Fundamental Analysis

Alibaba market capitalization stands today at 686.77 billion. The trailing P/E for BABA stock stands at 31.48, while the forward P/E is at 28.74. The PEG ratio is at 28.74, and the price to sales ratio is at 9,21.  

Alibaba Daily Technical Analysis

Alibaba is 0.96% higher at $260.59, as the recent stock rally gains traction, making fresh two week highs. Bulls now face the resistance at $265.45 which is the high from July 13, while the next supply zone stands at $268 the all-time high. 

On the flipside, immediate support for Alibaba is at $258.82 the daily low. Next support would be met at $248 the low from July 31. A break below the 50-day SMA at $232.23 would cancel the bullish momentum. 

Alibaba Daily Chart