Alibaba (BABA: NYE) investors are gearing up for the company’s Q4 earnings release scheduled for tomorrow, May 14th. Let’s delve into what analysts’ predictions hold for Alibaba’s stock price.
Expected Q4 Earnings of Alibaba:
Analysts anticipate Alibaba to report revenue of $30.48 billion in Q4, which is a modest increase compared to the $30.32 billion reported in the same quarter last year. While Alibaba’s focus on competitive pricing might boost sales volume, intense competition in the e-commerce sector and the company’s decision to scale back on certain low-margin cloud contracts are likely to dampen revenue growth in the near future.
Analysts also predict that the company’s profit will be negatively impacted by its pricing strategies. Wall Street expects Alibaba to report earnings per share (EPS) of $1.42 in Q4, representing a roughly 4% decline from the EPS of $1.48 reported in the previous year’s corresponding quarter.
Stock Target Advisor’s Analysis on Alibaba:
Stock Target Advisor’s analysis presents Alibaba’s stock with a “Buy” rating. This is attributed to factors such as low volatility, commendable cash and free cash flow, superior return on assets, a high market capitalization, and impressive return on equity.
A total of 12 analysts currently covering Alibaba recommend a ‘Strong Buy’, providing an average target price of $110.14. This, coupled with a low of $85 and a high of $150, suggests a generally positive outlook. Investors would do well to monitor how these projections align with Alibaba’s performance in the coming quarters.
Conclusion:
Alibaba’s Q4 expected performance and ongoing market dynamics make this stock on careful monitoring. Investors should consider the company’s earnings patterns, sector performance, and analyst recommendations to make informed investment decisions.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
