A year ago, the company delivered revenue of $13.9 billion, which increased 51% year-over-year and beat the consensus estimate at $13.3 billion. Alibaba’s BABA, … But for now, I am expecting the company to post some strong profit growth and robust sales numbers.Alibaba, the Chinese e-commerce giant, will announce its earnings on Tuesday before the US market opens. This means the maximum loss will be $655; however, the investor only needs the price to increase to $226.55 to break-even, and any increase in this call option will be pure profit.I was awarded a national award (Young Irish Broker) in 2010. Market participants are expecting a solid report; they expect the company to announce a 15.88 earning (adj., Chinese Yuan) per share, a 30.3% year-on-year growth, 159 billion (Chinese Yuan) in revenue, and a 36% year-on-year growth.
Revenue growth dipped to 22% for the quarter. What Analysts Predict About Alibaba Stock Analysts polled by Seeking Alpha expect revenue to climb 31.7% to $94.1 billion for the year ending March 2021 from $72 billion in 2020.
The company seeks to diversify its revenue sources. Understanding Alibaba’s Soft Earnings. I have also worked with top UK universities to give lectures and delivered an investment and trading course at the London School of Economics.Having identified a bullish setup, an investor determines the price level of a stock and shops for the best strike price with their brokerage firm. Therefore, assuming a position through an options trade could be one of the best strategies.Considering the current expectations, a call option may be a favorable choice. View BABA revenue estimates and earnings estimates, as well as analyst recommendations. The adjusted EPS will likely be $0.87.
The idea is to keep the option’s premium price as low as possible as the investor is not only betting on the price but also betting against time. If the premium is within 4% of the underlying price, the trade should have a better yield.Disclosure: I hold a position in AlibabaIf you’re interested in Alibaba’s stock, one strategy is to utilise the option’s market as it limits the downside risk; which is true whether you choose a put option or a call option. A call option is a position that an investor takes when he or she expects the price to move higher, and typically investors choose a put option when they expect the stock to produce feeble numbers. I was awarded a national award (Young Irish Broker) in 2010. I have worked with Bank of America in equity trading and with Bank of New York in hedge fund trading, I haveOverall, investors hope that Alibaba will cash more on its Singles’s Day in November which should help the company to ward off any pessimism from the on-going Cornovairus situation—the impact of which is inevitable in the upcoming quarter; and the firm will highly likely refer to it during their conference call.
Alibaba’s stock is not short of liquidity in the options market. I also called the bottom in Crude oil when it was trading near $25 with numerous print and digital financial media outlets. Adjusted earnings per share rose to RMB18.19 from RMB12.19 and came in above the FactSet consensus, which modeled RMB15.91. The adjusted EPS will likely be $0.87. Market participants are expecting a solid report; they expect the company to … When the stock price was trading at $217.50 with a strike price of $220 (February 28th expiration), the premium was approximately $6.50, or 3% of the stock price at the time.