3 Red Flags for Alibaba's Future
's (NYSE: BABA) stock price sank 9% on Nov. 16 after the Chinese e-commerce and cloud leader posted its latest earnings report. For the second quarter of fiscal 2024, which ended on Sept. 30, its revenue rose 9% year over year to 224.8 billion yuan ($30.8 billion), but that number missed analysts' expectations by $230 million.
Adjusted net income grew 19% to 40.2 billion yuan ($5.5 billion), or $2.14 per American Depositary Share (ADS), and cleared the consensus forecast by $0.05. Those headline numbers looked stable, but a deeper dive reveals three red flags.
Image source: Alibaba.
Source Fool.com
Alibaba Group Holding Ltd ADR Stock
€68.90
-0.720%
The stock is one of the favorites of our community with 44 Buy predictions and 2 Sell predictions.
With a target price of 109 € there is a hugely positive potential of 58.2% for Alibaba Group Holding Ltd ADR compared to the current price of 68.9 €.
