Alibaba (BABA) Shares Drop Ahead of Earnings Report

Tomorrow, on 15 November, Alibaba (BABA) will release its third-quarter 2024 earnings report. Analysts forecast a drop in earnings per share to $2.11 from $2.26 in the previous quarter.

Ahead of the report, Alibaba's share price has shown a downward trend, with a decline of over 20% from its October high. This drop is attributed not only to the waning of the strong bullish momentum seen in the Chinese stock market in September but also to increased competition from Temu and Pinduoduo. However, JP Morgan analyst Alex Yao predicts that "Alibaba will stabilise its market share in the coming years," potentially supporting its position as China's largest supplier.

A technical analysis of Alibaba’s (BABA) price chart reveals that:
→ this autumn, the stock price broke above a multi-year descending trend line (in red);
→ signs of support lines and pivot points suggest an emerging upward channel that could gain relevance in the long term following the breakout.

It’s evident that near the breakout of the red trend line (around $88), there were fewer sellers than buyers, suggesting sustained demand could support a bullish reversal if the price dips below $90.

According to TipRanks:
→ 15 of 18 analysts recommend buying BABA shares;
→ the average 12-month price target for BABA is $124.4.

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