Alibaba Stock Forecast: With 7% gain, BABA reaches six-month high
- Alibaba stock reaches highest level since November 15, 2023.
- BABA shares gain 7.1% as 13Fs get filed by institutions.
- David Tepper, Michael Burry have both been grabbing shares.
- JD.com saw ADS earnings rise 19% from a year earlier.
Alibaba (BABA) closed up 7.1% on Thursday as the ecommerce giant benefited more from JD.com’s earnings beat than its own. This gain, the best since January 23, puts Alibaba stock in striking distance of an important resistance band on the daily chart as it trades at a six-month high.
Additionally, 13F filings this week are showing that BABA continues to attract star investors to its fold.
Alibaba shares sold off earlier this week following its own earnings that replayed meager growth and management’s attempt to persuade shareholders by introducing a special dividend.
Alibaba stock news
One of Alibaba’s primary competitors, JD.com boasted a 7% annual revenue gain to $36 billion in the first quarter. Even better, earnings per ADS rose 19% from a year ago.
Rather than digging into Alibaba’s business, this was seen as a sign that the Chinese economy was more robust than many observers expected. JD.com stock did not fare as well as BABA though, rising just 1.9% in the session.
However, Alibaba stock is benefiting from the all-star investors who are taking a second look at the stock. On Thursday, 13F filings from hedge funds, family offices and other institutional investors were released for the first quarter.
In the quarter ending March 31, David Tepper’s Appaloosa Management hedge fund doubled its investment in Alibaba stock to more than $800 million. Additionally, Tepper bought more Baidu (BIDU) and PDD Holdings (PDD). Overall, it showed a strong sign of trust in the Chinese stock market, a market that has been ignored over the past two years by a large swath of Wall Street big-wigs.
Besides Tepper, Michael Burry of Scion Asset Management, his family office, added to his BABA stash, increasing it by 67% in the first quarter to $9 million. Burry has been adding to his Alibaba stake since the third quarter of 2023, and it appears he will continue doing so until there is a major reversal higher for the famed company.
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Alibaba stock forecast
Alibaba stock traded up to its highest level since November 15, 2023. Interestingly, the stock yielded before hitting the resistance band or supply zone between $87.80 and $88.80. That level has held significance since at least September of last year.
A break through that thicket would allow bulls to retest the $95.00 level, although that price tag largely worked as a support floor last summer.
The $80.00 level should now work as support over the near term as the 200-day Simple Moving Average (SMA) is traveling just below it. The 50-day SMA has only just moved above the 100-day SMA, a bullish sign that needs to be confirmed by the 50-day overtaking the 200-day soo enough.
BABA daily stock chart