Investing.com investing.com 08 Jan, 2021 11:45 am

Is Alibaba A Buy After 25% Plunge From Record High?

Is Alibaba A Buy After 25% Plunge From Record High?
Stocks Analysis by Investing.com (Haris Anwar/Investing.com) covering: Tencent Holdings Ltd ADR, Alibaba Group Holdings Ltd ADR. Read Investing.com (Haris Anwar/Investing.com)'s latest article on Investing.com

Ma’s current troubles began soon after he infuriated China’s leadership by criticizing financial regulations and quoting a phrase from Chinese President Xi Jinping in a controversial speech, according to the Wall Street Journal.The State Department, Department of Defense and Treasury Department are among authorities involved in the deliberations, according to a report by the Wall Street Journal.Baird analyst Colin Sebastian, while cutting BABA’s price target to $285 from $325 in a recent note, said it’s “very hard to predict the outcome” of the investigation.KeyBanc Capital Markets, on the other hand, said the stock’s recent weakness has generated a juicy buying opportunity, assigning an overweight rating to the stock with a $355 a share price target.

This complex situation makes it hard for investors to take advantage of BABA’s share price weakness, which some analysts believe is up for grabs due to the company’s immense growth from online shopping and its fast-growing cloud business.That said, it’s hard to predict how much damage these headwinds will produce for the internet giant in the short run.

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