Alibaba retreat from record highs that register yesterday amid a strong rally in the technology sector in USA and China. AliExpress Russia announced that it is targeting for annual sales of $10 billion by 2022-2023, well above the analyst’s expectations of $6 billion.
Alibaba will report its earnings on August 20, with analysts expecting $13.65 earnings per share with the high estimate at $16.47 per share and the low estimate at $11.24 per share.
On the revenue, the consensus is for 147.86 billion with the high estimate at 157.7 billion and the low estimate at 141.2 billion. For the full year the market expects earnings of 76.12 per share and the revenues at 832.44 billion.
On the first quarter, BABA reported $9.20 earnings per share, topping analysts’ estimates of $0.59. The company reported revenue of $114.31 billion also above the expectations of $108.00 billion.
Alibaba Technical Analysis
Alibaba is 0.84% lower at 259.36, in a correction that might be shortlived as the technical outlook is clearly bullish, and the online retail sector is the top preference for investors during the coronavirus crisis.
On the downside, the first support for BABA stock stands at 255.71 the daily low. More bids would emerge at 244.15 the low from yesterday’s trading session. In case the bears continue the selling pressure, the next support zone stands at 234.09 the low from July 6.
On the flip side, first resistance stands at 260.62 the daily high. A break above would challenge the record highs at 268, and then the psychological 300 mark.
Alibaba Daily Chart