68.64 0.00 (0.00%)
After hours: 4:43PM EDT
|Bid||68.66 x 1100|
|Ask||68.67 x 1800|
|Day's Range||68.27 - 68.95|
|52 Week Range||54.75 - 79.18|
|Beta (3Y Monthly)||1.68|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 14, 2019 - Aug 19, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||76.00|
Alibaba (NYSE:BABA) reportedly is getting a Hong Kong listing. Multiple reports suggest the company is planning to sell $20 billion worth of Alibaba stock on the Hong Kong Stock Exchange. A key question, with the BABA stock price down about 18% from early May highs, is "Why now?".Source: Shutterstock As with so much when it comes to Alibaba stock, bulls and bears likely will answer the question very differently. Bulls see the company raising capital for its myriad initiatives -- and potentially raising the profile of BABA stock. Bears wonder why the company needs the cash and why it needs to do such a deal now.BABA has long been a battleground stock. The Hong Kong listing likely will only harden both sides.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Case for the Alibaba Stock OfferingThere are two broad benefits to the cross-listing. One, Alibaba's plan to list on the Hong Kong exchange could -- and maybe should -- drive the BABA stock price higher.Hong Kong-listed shares can be owned directly by Chinese investors. Those investors might see Alibaba more favorably than their foreign counterparts. And if Alibaba stock rises on the Hong Kong exchange, its New York listing might do the same, as arbitrageurs buy cheaper New York-listed shares. * 7 Top-Rated Biotech Stocks to Invest In Today That said, those arbitrageurs also would sell the Hong Kong-listed shares, potentially mitigating some of the effects of increased demand. And the two shares would not be the same: BABA stock does not offer direct ownership of the company. Rather, 'shareholders' own a stake in a VIE (variable interest entity) in the Cayman Islands.That VIE has a contractual right to Alibaba profits -- but that's not the same thing as actually owning shares of Alibaba itself. As such, it would seem almost certain that Alibaba shares in New York will trade at a consistent, if modest, discount to the Hong Kong-listed shares to account for the VIE-related risk.Still, details aside, a second listing could increase demand for Alibaba stock, particularly among China's retail investors. Smaller investors control 35% of the Chinese market, against an 8% share in the U.S. And the pending Alibaba stock split likely allows those Chinese retail investors to afford smaller positions. There is a case that BABA stock should get a bump from the two listings.The second goal, apparently, is to raise capital. Alibaba's New York IPO was the largest in history, raising $25 billion. Alibaba reportedly will bring in another $20 billion this time around. Those funds can be used for more acquisitions; building out the cloud business; or further investing behind the business.That in turn would seem to signal a longer-term rise in Alibaba stock, assuming the funds are invested well. The Case Against the OfferingSo BABA bulls no doubt see the new listing as good news. Indeed, the BABA stock price has risen modestly of late, though a stronger broad market likely plays a role as well.But for Alibaba skeptics, the offering seems curious. That's particularly true for investors who question the company's accounting, The first question is why, exactly, Alibaba needs another $20 billion. The company closed fiscal 2019 (ending March 31) with $28.3 billion in cash on its balance sheet. Alibaba owns another $24 billion or so in investment securities (not including its investments in private companies). That $44 billion war chest sits against total debt of less than $9 billion.To be sure, Alibaba does have places to spend its cash. The company's operations beyond core commerce last year -- cloud computing, digital media and entertainment, and its "innovation initiatives" -- all posted losses last year as Alibaba invested in future growth. In cloud, Alibaba is trying to replicate the success of Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). Rival JD.com (NASDAQ:JD) is spending heavily on its supply chain.But operating losses for those segments totaled a little over $5 billion. Even with those losses, free cash flow was somewhere in the range of $15 billion, even including payments for copyrights and other intangible assets. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 For those who doubt Alibaba, the offering (which reportedly will be of new shares) makes little sense. Alibaba, if its financials are accurate, has more than enough cash to fund even aggressive investments in its new initiatives. Unless there's a big acquisition planned, Alibaba is diluting its shareholders for money it doesn't seem to need. Is the BABA Stock Price Too Low?Alibaba stock is down 23% from July 2018 highs. Yet it will likely price those shares at a discount to the current U.S.-listed price (as is usually the case with these offerings). That in turn means Alibaba shareholders will see their ownership diluted at a price well below their view of the stock's intrinsic value. (Presumably, all Alibaba shareholders, outside of passive managers, believe the stock is undervalued at the moment.)It's possible the dilution will be worth it. Perhaps Alibaba has a big deal in mind. It needs to compete against JD.com and Tencent Holdings (OTCMKTS:TCEHY) and, perhaps, the more cash the better. A wider reach for the stock -- and direct ownership, as opposed to the U.S.-based VIE structure -- can help as well.But the capital raise only adds to the doubts surrounding BABA stock as well. And while short interest here is likely somewhat overstated (there are no doubt arbitrage traders who are long Altaba (NASDAQ:AABA) and short BABA), short sellers likely will see the offering as confirming their thesis, not disproving it.In short, the beauty of the listing, like Alibaba stock, is in the eye of the beholder. Bulls see more shareholders, more cash, and a higher BABA stock price. Bears see another questionable move … and maybe even another red flag. Time will tell which side has it right.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post With BABA Stock Price Down, Why Is Alibaba Selling Shares In Hong Kong? appeared first on InvestorPlace.
The last three months have understandably been tough for Alibaba (NYSE: BABA) stock. America's trade war with China has spooked investors. Alibaba is one of the largest and most visible Chinese companies, so the decline of Alibaba stock is entirely logical.Source: Shutterstock Surprisingly, despite a 17% selloff in the past three months, BABA stock price is still up 9.4% overall year-to-date. That performance is roughly in-line with the overall S&P 500. * 6 Big Dividend Stocks to Buy as Yields Plunge There are three primary issues driving BABA stock price lower in recent weeks. All three of them are temporary and have created an excellent, long-term buying opportunity.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Altaba Is Dumping Alibaba StockPotentially the biggest bearish catalyst for BABA stock in the past two months has nothing to do with the trade war. In early April, Altaba (NASDAQ: AABA) announced it planned to liquidate its holdings of Alibaba stock. Altaba is the company that remained after Verizon (NYSE: VZ) purchased Yahoo's internet business back in 2017. The holding company currently has an 11% ownership interest in Alibaba, so one of the largest holders of BABA stock is looking to sell its shares.Altaba began selling its BABA stock on May 15. As of the end of the first quarter, Altaba held 283.3 million shares of Alibaba stock. Presumably, the market will need to digest at least the vast majority of these shares in coming weeks.Even the best stock in the world would struggle to rise as tens of millions shares of it were being dumped into the market on a weekly basis. However, as Stifel analyst Scott Devitt noted, Altaba has absolutely nothing to do with Alibaba's business."While the Altaba liquidation creates additional near-term selling pressure, the event has no fundamental bearing on Alibaba and creates an opportunity for long-term holders, in our view," Devitt wrote.To take that point one step further, Altaba's shares have been an albatross for BABA stock for years. Investors knew Altaba would sell its Alibaba stock at some point. Getting the unloading out of the way could ultimately help boost the earnings multiple of Alibaba stock. BABA's Margins Trends Are ConcerningOne of the biggest bear arguments against BABA stock is that the company's margins are compressing. Its operating margins dropped from 15% in Q3 to 11.1% in Q4, which was reported last month. Its core e-commerce margins were just fine in Q4, as the unit's EBITA margin came in at 35%.However, Alibaba's staggering revenue growth comes at a high price.The company has been aggressively investing to grow its merchant base and expand its operations into smaller, more rural cities in China. It has also been investing in high-growth businesses such as cloud services, digital media and other innovative ideas. Last quarter, the EBITA margin of its cloud business was -2%. The EBITA margin of its digital media and entertainment business , by contrast,was about 50%.Not all BABA's investments need to produce hits, as long as it produces a couple of home runs over the long-term. In addition, for better or worse, its investment stage will come to an end soon."The level of EBITDA margin compression should ease in F2020 versus the ~10ppts of compression in F2019," Stifel's Devitt says. Stifel is projecting just a 2% decline in margins in fiscal 2020.While BABA's profits and margins are suffering, its investments are paying off huge in the revenue department. Its revenue was up a staggering 51% last quarter. Alibaba is often compared to high-growth U.S. tech stock Amazon (NASDAQ: AMZN). For some perspective on BABA's growth, Amazon 's top line rose just 17% last quarter. BABA Stock Is Not ChinaThe third and most frustrating reason for the weakness in Alibaba stock is that U.S. investors are using it as a proxy for shorting China. One round of tariff hikes after another is threatening the international business of U.S. and Chinese companies alike.Chinese companies that sell products to U.S. businesses and customers may be in trouble. Fortunately for the owners of BABA stock, Alibaba is a Chinese company that sells to Chinese customers. In fact, roughly 90% of Alibaba's e-commerce revenue in 2019 is expected to come from within China.Yet if the trade war hurts China's economy, Alibaba's business could ultimately suffer. However, the company's 51% revenue growth in Q4 suggests Alibaba is doing just fine so far in 2019.Despite Alibaba's relative insulation from the trade war, investors insist on using BABA stock to short China. As of March, S3 Partners analyst Ihor Dusaniwsky said $20.7 billion worth of Alibaba stock was being sold short, making it the single most shorted stock in the world, in terms of total dollar value.When the trade war ultimately comes to an end, these selling BABA stock short are going to have to take a hard look at covering their positions. Even after BABA's heavy investing, Altaba's dump of Alibaba stock and an unprecedented trade war, BABA stock is up 9.4% this year. At least three of the problems weighing on the stock are temporary in nature. Traders should take advantage of this buying opportunity while they can.As of this writing, Wayne Duggan was long BABA stock. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Sell Impacted by the Mexican Tariffs * 6 Big Dividend Stocks to Buy as Yields Plunge * The 10 Biggest Announcements From Apple WWDC 2019 Compare Brokers The post 3 Reasons the Selloff of Alibaba Stock Is Temporary appeared first on InvestorPlace.
Insider Monkey has processed numerous 13F filings of hedge funds and successful investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find write-ups about an individual hedge fund's trades on numerous financial news […]
The Seattle-based biotech company spun out of the Fred Hutchinson Cancer Research Center in 2009 and has independently raised more than $400 million in funding.
Investing.com - Bitcoin continued to rise and other top cryptocurrencies also traded higher on Tuesday morning in Asia.
Read the beginning of this article here. As of March 31st, 2019, Dorsal Capital Management's most valuable position was also one of its newest acquisitions, Altaba Inc. (NASDAQ:AABA). The fund purchased 2.15 million shares of the publicly traded closed-end management investment company that used to be known as Yahoo! Inc. The value of the stake […]
Stifel analyst Scott Devitt added ADRs of the Chinese internet giant to the firm’s select list and sees them rising to $220 each. He sees opportunity for patient holders.
Just months following the company's $130 million initial public offering, Precision Biosciences has announced a $50 million credit agreement with a West Coast bank.
Although it is rapidly approaching 13F season and traders are closely watching oil stocks due to the rising Middle East tensions, several stocks such as Alibaba Group Holding Limited (NYSE:BABA), Altaba Inc. (NASDAQ:AABA), Cisco Systems, Inc. (NASDAQ:CSCO), Agios Pharmaceuticals Inc (NASDAQ:AGIO), and Virtusa Corporation (NASDAQ:VRTU) are in the spotlight for various reasons. Let's analyze why traders are watching each stock […]
Altaba Inc. (“Altaba” or the “Fund”) announced today that, in connection with its previously announced Plan of Complete Liquidation and Dissolution (the “Plan”), the Fund intends to commence selling the Alibaba Group Holding Limited’s (“Alibaba”) American Depositary Shares (the “Alibaba Shares”) on May 20, 2019. The Fund intends to sell the Alibaba Shares through open market transactions and/or through private dispositions not executed or recorded on a public exchange or quotation service. The Fund has previously disclosed that it intends to sell a minimum number of Alibaba Shares to ensure that the Fund has sufficient liquid assets to cover the amount of assets that the board of directors of the Fund (the “Board”) estimates will be sufficient to cover the maximum potential reserves that might be required by the Delaware Court of Chancery to satisfy the Fund’s known, contingent and potential future liabilities, and the Fund may sell up to 100% of its Alibaba Shares.
Shares of Alibaba Group Holding Ltd. gained 0.7% in very active morning trade Wednesday, to buck the selloff in the broader stock market, after the China-based e-commerce behemoth beat fiscal fourth-quarter revenue expectations for the first time in a year. Volume topped 13 million shares, enough to make the stock the most actively traded on major U.S. exchanges, and just below the full-day average of 14.6 million shares. Meanwhile, the S&P 500 fell 0.5%. Both earnings and revenue rose above the average analyst estimates compiled by FactSet. For fiscal 2020, the company expects to generate over RMB500 billion in revenue, which would represent growth of 32.7% over the RMB376.84 billion in revenue the company recorded in 2019, which was 50.6% above 2018 revenue of RMB250.27 billion. Separately, shares of Altaba Inc. , which owned 283.3 million shares of Alibaba as of March 31, rose 0.5%. Alibaba's stock has now rallied 28.4% year to date, while the S&P 500 has gained 12.6%.
Altaba Inc. (“Altaba” or the “Fund”) (AABA) today announced that its special meeting of stockholders in connection with the proposed liquidation and dissolution of the Fund will be held on Thursday, June 27, 2019 at 11:30 a.m. (Eastern time), at 50 Vanderbilt Avenue, New York, New York 10017. At the special meeting, the Fund’s stockholders will meet for the following purposes: (i) to consider and vote upon a proposal to approve the voluntary liquidation and dissolution of the Fund pursuant to the Fund’s previously announced Plan of Complete Liquidation and Dissolution (the “Plan”) and (ii) to grant discretionary authority to the Board of Directors of the Fund (the “Board”) to adjourn the special meeting, even if a quorum is present, to solicit additional proxies in the event that there are insufficient votes at the time of the special meeting to approve the liquidation and dissolution of the Fund pursuant to the Plan.
Altaba Inc NASDAQ/NGS:AABAView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is low for AABA with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding AABA totaled $7.01 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
China is already the second largest economy in the world and some believe it will eventually be the biggest one day. Given how large China's market is, President Trump has pushed for fairer trade standards and for the government there to open more markets. One potential concession made by the Chinese government is potentially the cloud. According […]
Billionaire George Soros is one of the greatest investors of all time. His overall performance ranks up there with Simons, Buffett, Icahn, and other famous names. Soros has also shown his shrewdness in the futures market, forex market, and the equity market. Unlike some other markets, we as average investors get to see how his fund, Soros […]
Altaba holders may want to consider selling their shares rather than waiting for the company’s complex liquidation process to play out over what could be several years.
Altaba’s move to liquidate its big stake in Alibaba and close down isn’t quite the deal JPMorgan was looking for, but investors can expect Altaba shares to rise about 7% by the end of the year assuming the liquidation goes through.
As it turns out Michael Gelband’s ExodusPoint Capital is the hottest new hedge fund of 2018 because more and more people are stepping down from its current portfolio manager roles just to take a chance at working at ExodusPoint as analysts. For example, Josh Powers joined ExodusPoint in December leaving First New York, where he […]
The Yahoo spin-out created to house Yahoo's lucrative stake in Alibaba and Yahoo Japan announced today that it will sell its lucrative stake in Alibaba and shut up shop. The entity has long existed as a proxy to Alibaba -- some might argue Yahoo was the same in its final years -- and the sale is expected to net shareholders around $40 billion. Altaba was formed following AOL's 2017 acquisition of Yahoo to create Oath -- disclaimer: that's TechCrunch's parent, and it is now called Verizon Media Group -- to keep hold of the 15 percent stake in Alibaba and a 35.5 percent stake in Yahoo Japan that Yahoo owned.
Altaba, whose chief asset is a $50 billion stake in Alibaba Group Holding, plans to liquidate and distribute its assets to shareholders in an effort to deliver the most value to its own investors.