Alibaba (NYSE: BABA) posted its latest quarterly report on Feb. 23. For the third quarter of fiscal 2023 (ended on Dec. 31), the Chinese e-commerce and cloud giant's revenue grew 2% year over year to 247.8 billion yuan ($35.9 billion) and beat analysts' estimates by $40 million.
A set of bumper earnings reports from the likes of Baidu Inc and other Chinese internet giants isn't impressing hedge funds and other investors who have cut exposure to the stocks and seem to be waiting for more good news.
Many investors brush off or ignore options trading because options are complex and misunderstood. However, many other traders have learned how to “follow the flow.” In other words, they want to know what the big funds and institutions are doing. When these buyers
In this video, I talk about Alibaba's (NYSE: BABA) latest earnings report, especially the potential risks, but also the rewards investors could expect should they decide to buy the recent dip.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Alibaba (BABA) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Wall Street was downbeat, with the S&P 500, the Dow Jones, the Nasdaq Composite and the Russell 2000 losing about 2.7%, 3%, 3.3% and 2.9%, respectively, last week, due to rising rate worries. A round of upbeat economic data points indicated a longer-than-expected Fed
Alibaba (NYSE: BABA) generates a majority of its revenue and profits from China. With the economic reopening, consumer activity is likely to increase. This video will review Alibaba's latest earnings and answer whether the stock is a buy right now.
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Alibaba Group Holding Limited BABA reported third-quarter fiscal 2023 non-GAAP earnings of $2.79 per ADS (RMB 19.26), which surpassed the Zacks Consensus Estimate by 21.8%. The figure increased 14% from the year-ago fiscal quarter’s reported figure in RMB terms.Revenues o
Chinese e-commerce giant Alibaba Group BABA reported robust third-quarter fiscal 2023 before the opening bell on Feb 23, wherein it beat the Zacks Consensus Estimate for both earnings and revenues.Following the earnings beat, shares of Alibaba initially jumped 6% but eras
Shares of Chinese companies listed in the United States fell in early trading on Friday as reports that Washington was looking to expand the number of troops helping train Taiwanese forces added to rising Sino-U.S. tensions.
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Which stocks are best to buy today? According to top Wall Street analysts, the three stocks listed below are Strong Buys. Each stock received a new Buy rating recently and has a significant upside as well.
To find more stocks like these, take a look at TipRanks’
Analyst Top Stocks tool. It shows you a real-time list of all stocks that have been recently rated by top-ranking analysts.
Here are today’s stocks. Click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio.
Alibaba Group (
NYSE:BABA)
– Six top analysts recently rated this stock a Buy. Alibaba is a Chinese multinational company that offers e-commerce, retail, Internet, and technology services. Today, Bank of America Securities analyst
Eddie Leung reiterated a Buy rating on
BABA stock with a price target of $144. Further, the consensus 12-month forecast of top analysts on the stock indicates an upside of 49.3%.
Baidu (
NASDAQ:BIDU)
– Baidu is a Chinese technology, internet search, and internet services company. Yesterday, analyst
Fawne Jiang of Benchmark Co. reiterated a Buy rating on
BIDU stock and raised the price target to $210 from $200. The stock’s 12-month price prediction, based on the consensus of the seven top analysts who gave it a Buy rating, implies an upside of 27.5%.
Tandem Diabetes Care (
NASDAQ:TNDM)
– Four top analysts who recently rated
TNDM stock gave it a Buy recommendation. The company develops products for people with insulin-dependent diabetes. Yesterday, Barclays analyst
Matt Miksic reaffirmed a Buy rating on the stock but lowered the price target to $71 from $76. Overall, the consensus 12-month price target of top analysts suggests an upside of 40.4%.
Who are the Top Analysts?
TipRanks ranks financial analysts according to the success rates of their ratings and the average return on each of their ratings. See real-time analyst rankings and learn more about the performance of top analysts on TipRanks’
Top Wall Street Analysts page.
Tech stocks have enjoyed a bit of relief this year, but it's unclear whether the tides will turn again. The latest inflation number seemed to cause investor sentiment to turn, and more rate hikes seem necessary to stomp out inflation, even if it means setting the stage for a landing that's a tad less soft.
In any case, Wall Street analysts continue to favor the following tech stocks listed below. They aren't immune to the headwinds ahead, but after more than a year of turbulence, each name seems to be trading at a historically attractive multiple.
Therefore, let's weigh in on the following
Strong-Buy-rated tech names -- TSM, BABA, and NOW -- that may still be worth a buy as the tech rally takes a bit of a breather.
Taiwan Semiconductor (
NYSE:TSM)
Warren Buffett's Berkshire Hathaway (
NYSE:BRK.B
) initiated a sizeable stake in the semiconductor giant last year, only to ditch 86% of its stake just a few months later. As a financial behemoth known for long-term investment, the move was a bit puzzling.
Given the timing of the buys and sells, it's unlikely that the recent share sale was a move to lock in a profit. Shares of TSM suffered quite a plunge in autumn, only partially recovering by year's end. Despite Berkshire's trim, I am bullish.
It's unknown who made the buy and sell decisions over at Berkshire. Regardless, it seems like demand may not be as robust as we learn more about the potential recession to come. In any case, TSM stock still looks incredibly cheap at
14.8 times trailing earnings, which is miles below the semiconductor industry average P/E of 41.6 times.
Taiwan Semi's capital spending plan is now tamer, with $32 billion - $36 billion in the budget, lower than the $36.3 billion from last year. Despite the budget cuts, Taiwan Semi continues to be a leader in the space, with its expansion plans still in full swing.
As an economic downturn eats into chip demand, TSM stock is sure to be a choppy ride. However, longer term, I do think Taiwan Semiconductor stock still looks undervalued, even if Berkshire has reasons to trim.
What is the Price Target for TSM Stock?
Wall Street loves Taiwan Semiconductor, with a "Strong Buy" rating based on four unanimous Buys. The
average TSM stock price target of $104.33 implies 15.8% gains from here.
Alibaba (
NYSE:BABA)
Alibaba is a Chinese tech titan that is back on the retreat after enjoying a massive rally off its October 2022 lows.
Shares surged more than 100% from trough to peak before slipping just north of 22%. Indeed, Chinese tech giants are known to be volatile movers. With BABA stock trending lower again, I do think there's a reason for optimism as the stock looks to shed its weaker-handed investors. I am bullish.
In the fourth quarter, The Big Short's Michael Burry took a stake in the ailing e-commerce giant Alibaba. Though it's unclear as to what Burry has done with the investment to date, I do think the move was a huge vote of confidence in the inevitability of
Chinese stocks.
Yes, there are added risks to betting on Chinese stocks. However, in terms of value for growth, it's tough to stack up against the likes of Alibaba, especially as the Chinese economy reopens from lockdowns. Add an upbeat AliCloud offering into the equation, and I think Alibaba is a Chinese name that's well worth the risk as negative momentum picks up again.
At writing, shares of BABA go for 11.5 times forward earnings. For a firm capable of sustaining double-digit growth over time, I find the multiple absurdly low.
What is the Price Target for BABA Stock?
Analysts have a "Strong Buy" rating on Alibaba based on 10 unanimous Buys assigned in the past three months. The
average BABA stock price target of $143.89 implies 52.8% upside potential from current levels.
ServiceNow (
NASDAQ:NOW)
ServiceNow is a SaaS firm that
got cut in half from peak to trough. Though shares trended higher to date on the back of
a solid fourth-quarter earnings result ($2.28 EPS vs. $2.02 estimate) on $1.9 billion in revenue, ServiceNow still stands out as a growth stock. I remain bullish.
At 12.2 times sales, NOW is still considerably more expensive than the software industry average of 9.2 times. It is worth noting that ServiceNow has held up far better than expectations amid the headwinds, with 20% in top-line growth.
For now, guidance is calling for a very solid 22% - 22.5% in year-over-year growth. ServiceNow is also relatively steady, while other big-tech firms engage in mass layoffs. Only time will tell if cloud transformation tailwinds will help ServiceNow offset recession headwinds. If the firm can deliver, its premium to the peer group could expand further, and it may be able to avoid steep cost cuts.
What is the Price Target for NOW Stock?
Wall Street is upbeat on ServiceNow, with a "Strong Buy" consensus rating, including 22 Buys and two Holds. The
average NOW stock price target of $514.70 implies 16.5% upside potential from here.
The Takeaway
Tech is feeling the pressure again, but the following three names seem more than capable of solid gains throughout the year. Of the three, analysts expect the biggest returns from Alibaba.
Disclosure