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Technology

Alibaba Group Holding Limited (BABA) Stock: $110 Level in Sight Today!

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The $110 level seems to be in sight, as the pre-market trading suggests

The recent bullish wave in Alibaba Group Holding Ltd. (NYSE:BABA) is accompanied by the rising optimism among the Street. That being said, TheCountryCaller has persisted on our bullish views even when the stock was trading near the $70 levels. Despite all the hurdles, the company has managed to improve its position in the recent times, as the stock prices crossed the three-digit-barrier and are heading to higher levels. Even today, $110 level seems to be in sight, as the pre-market trading suggests.

That being said, TheCountryCaller throws light onto a few factors that hint a correction may soon be on the cards. The recent short interest data suggests an increase in the number of shares short by over 5%, which hints that the bears might just pull back prices in the coming times. Moreover, the Street’s consensus PT is near the current market price.

However, as we’ve discussed, the Beijing-based retailer’s potential is not confined to price targets. The company’s growth on multiple fronts has been commendable. The company’s move into mobile gaming is an additional revenue stream, which can help in supporting its topline going forward. The Street’s optimism has been increasing every day, as brokerages have been raising their price targets. Although we do remain optimistic about the company’s future, but a correction may be on cards.

The Chinese retailer’s stock is being rated very highly by analysts, while a few reckon it to be on the same path as its rival Amazon.com. We, however, believe that the company is better poised than Amazon.com in its past, which reckons a higher potential for investors. We expect the stock to cross the $150 level by December; let’s see if it gets there sooner than expected.

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