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Should You Buy Alibaba on the Post-Earnings Dip?

Published 11/23/2021, 07:40 AM
Updated 11/23/2021, 08:30 AM
© Reuters.  Should You Buy Alibaba on the Post-Earnings Dip?

China-based e-commerce giant Alibaba’s (BABA) shares have dipped more than 15% in price since the company reported its quarterly financials on November 18. So, can the stock rebound on the back of the company’s broad portfolio of products and services? Read on.E-commerce giant Alibaba (NYSE:BABA) Group Holding Limited (BABA), which is headquartered in Hangzhou, China, operates through various business segments, including Taobao, Alibaba.com, Tmall, and Alibaba Cloud. The company has completed several developments over the past few months, especially in the cloud segment. However, the stock has declined 15.5% in price since the company reported its fiscal second-quarter 2022 financials on November 18. BABA missed Street estimates on both top and bottom lines.

Moreover, BABA lowered its revenue guidance for its fiscal year 2022. It now expects revenue growth to be in the range of 20% to 23%, compared to its previous forecast of 27% growth.

According to a Reuters report, China's market regulator fined several companies, including BABA, for failing to declare 43 deals, asserting that they violated anti-monopoly legislation. Also, BABA’s Singles’ Day sales growth percentage fell to its lowest in its history amid China’s tech crackdown. So, BABA’s near-term prospects look uncertain.

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