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Alibaba Group Holding Ltd: Be Ready for a Bullish Ride Next Week

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The coming week is expected to be good for the bulls

Chinese e-commerce retailer Alibaba Group Holding Ltd.’s (NYSE:BABA) recent developments seem to have finally increased the optimism among investors. Meanwhile, brokerages have had a bullish stance for a while now. Renowned Street houses such as Morgan Stanley have reckoned that the e-commerce stock has an upside of more than 70%, while investors have not yet explored its true potential. That being said, we expect the coming week to take the e-commerce retailer’s stock to a higher level. Alibaba Group Holding is due to report its first quarter earnings on Thursday, and there are a lot of positive developments expected within.

The Country Caller has recently discussed Jack Ma’s recent moves to take e-commerce to a whole new level, by integrating it with Virtual reality. Moreover, the company’s recent alliance with the International e-sports federation is also expected to play a vital role in future. One of the reasons why investors kept themselves away from the e-commerce stock were the controversies surrounding the e-commerce giant. However, the $211.97 billion company has recently got a partial clean chit in one of the law suits that accused the company from claims related to counterfeit goods, as a U.S judge dismissed few claims filed by brands against Alibaba.

We expect trade volumes to be high on Thursday as the earnings release nears. The Street expects a topline of $4.61 billion for the current quarter, which implies a quarterly increase of 41.2%. The expected EPS is $0.63 for the recent quarter, while there are high chances that the stock prices may jump following the earnings, as the trend has persisted four out of the last seven times. We may see adjustments by brokerage houses, should the earnings beat. However, we expect investors to be active from Monday. Let’s if the bullish run can start on Monday.

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