Alibaba Upgraded at Bernstein as Firm Sees Winter Ending for Chinese Tech Giant
July 22, 2022
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Alibaba ($NYSE:BABA) shares were upgraded at Bernstein on Wednesday, as the investment firm said winter is ending for the Chinese tech giant. Shares of Alibaba have been under pressure over the past year due to concerns about the Chinese economy and the trade war with the United States. Bernstein analyst David Dai said in a note to clients that Alibaba is well-positioned to benefit from a rebound in the Chinese economy. He also said that Alibaba’s recent investments in areas such as cloud computing and e-commerce should pay off in the long run. Do you think this will affect Alibaba’s market and earnings in the long term? Yes, I think this will positively affect Alibaba’s market and earnings in the long term. Bernstein is a well-respected investment firm, and their upgrade of Alibaba shares is based on their positive outlook for the company. Alibaba is a giant in the Chinese tech industry, and as the Chinese economy rebounds, Alibaba will benefit greatly. Their recent investments in areas such as cloud computing and e-commerce will also help them to grow and succeed in the long term.
Market Reaction
On Wednesday, Alibaba stock opened at $106.2 and closed at $104.0. Alibaba has been facing challenges due to the U.S.-China trade war, but Bernstein is optimistic that things will improve for the company. Alibaba is a leading e-commerce platform in China and has a strong position in the market. Bernstein believes that Alibaba will continue to grow and be a major player in the tech industry.
VI Analysis
Company’s fundamentals reflect its long term potential, below analysis on ALIBABA are made simple by VI app. The intrinsic value of ALIBABA share is around $273.3, calculated by VI Line. Now ALIBABA stock is traded at $104.0, undervalued by 62%.
Summary
Alibaba has been under pressure in recent months due to the ongoing trade war between the U.S. and China, as well as concerns about the Chinese economy. However, Bernstein said that Alibaba is “well-positioned to weather the current macroeconomic headwinds” and that the company’s recent investments in areas such as cloud computing and artificial intelligence will pay off in the long run.
