ALIBABA Q4 PROFIT TOPS EXPECTATIONS; STOCKS FALL
Alibaba is currently trading at 201.49-lower by 5.03% as compared to the previous closing price. In the pre-market trading session, the stock was trading higher by 0.30%. The stock has erased all of its earlier gains and turned negative after the opening bell.
The company reported its fourth-quarter results before the market open on Friday. The Chinese e-commerce giant benefited from a rise in online shopping due to the pneumonia-causing virus outbreak. The company generated an adjusted EPS of 9.20 yuan for the fourth quarter. The EPS was above the market expectation of 6.10 yuan. Alibaba brought in 114.31 billion yuan in revenue for the fourth quarter. The revenue was also above the consensus estimates of 107.46 billion yuan.
Alibaba exceeded $1 trillion in gross merchandise volume for the first time in its fiscal year ending in March. The Chinese e-commerce giant’s core commerce business rose about 19% to $13.16 billion in the quarter ended 31st March. Stocks of Alibaba have fallen about 5% so far this year.
On the technical front, the current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards. The RSI is currently at 47.02% and suggests that the market can move in the downward direction.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
TRADE SUGGESTION- LIMIT SELL AT 201.80 TAKE PROFIT AT 199.40 STOP LOSS AT 203.00