After their IPO on 19th September 2014 the price of Alibaba stock was started at $92,30. And reached the highest price of $120 on the 14th of November 2014. From there the stock price of Alibaba declined to $82,15 today 21th of April when writing this article.
What causes the declining?
Well since Alibaba’s highest pike on the 14th of November, the company have been receiving critics from Chinese regulators on their e-commerce activities, forecasts that missed estimates and Alibaba is also currently facing slow growth in sales. And don’t forget the Chinese e-commerce market is growing that fast as many are expecting it.
What to do now?
Alibaba is still facing many challenges; they are still testing the waters of the international markets. Jack Ma announce a while back that Alibaba is going to focus a lot more on making money international then only on China. In the long term might succeed in this but in the short term its going to be difficult. Having Amazon as a competitor…
On the other hand Alibaba profits are still rising and sales are still good despite it didn’t met the expectations of many analysts. And Alibaba is making big investments in small tech us companies that could give Alibaba a good return on their investment. One the start up company that Alibaba have invested in is SnapChat.
We at TradeAndInvest101.com are thinking on holding Alibaba stocks with put options. We might go in the swing trade with CFD’s on Alibaba stocks.
As you can see from the screenshot. From march till now the Alibaba stock price movement has been and still is in a indecisive trend. You might have notice the double inside bar which indicates that the indecisive trend will continue. On 7th may 2015 Alibaba company will announce their first quarter results. We think that day is the day that might end the indecisive trend of Alibaba stock price movement. If the results are good and Alibaba stock price close above 85 dollars we might get a uptrend of Alibaba. And if the results are bad and the stock price of Alibaba closes below 80 dollars we might get a downtrend of Alibaba.