Analysts are Bullish on Alibaba Shares - Updated

Shares of Alibaba, BABA, have stalled recently in its rally.  Shares touched $120 briefly, and have had a slight correction since.  However, this is not to fear because for one, shares are strongly ahead of its IPO price.

Furthermore, recent analyst actions show that there are many bulls out there.  Cantor Fitzgerald, HSBC, and Bank of America all have issued either buy or overweight ratings on BABA during the month of November.

It will be interesting to see how the year ends for the share price of Alibaba, but I would expect its share price to reflect positively if we see strong holiday sales.

Disclosure, I am long BABA.

Alibaba Earnings are Out - Good News

Alibaba, ticker symbol BABA, came out with earnings today that helped investors breathe a sigh of relief.  The stock has been a steady performer since going public, and today its results did not disappoint.  Mobile revenue grew by about 10 times the amount of the same time last year and earnings per share met the street estimates.  The stock is up decently today.   Disclosure, I am long BABA and recommend it.

Alibaba Ahead of Earnings - Expectations and Implied Volatility

Alibaba, ticker symbol BABA, is reporting earnings before the market opens tomorrow.  The street has high expectations, but not to worry because it is estimated that online Chinese sales will grow about 45% this year.  Alibaba has approximately 80% of the online market.

The options market is still implying about a 5% volatility from these earnings, despite the 3.47% current gain in BABA shares so far today.  I bought more BABA stock today, and expect that these earnings are going to be a blockbuster.

I believe that we have yet to see a big move in the stock, so far the gains and price swings have been minimal.  I expect that it will change starting with the earnings report and believe that Alibaba is in better position than Twitter and Facebook were for their first earnings annoucements as publicly traded companies.

Alibaba is a Buy - Undervalued Indeed

Today I finally initiated a long position in Alibaba shares.  I find the stock to be extremely undervalued and believe it is going to go to $120 per share in short order.  This could happen just with the earnings release in November, the week of the 17th.  We will see, but my money is where my mouth is now.