ALIBABA weekly uptrend opportunity based On 1.00 Lot Calculation:
GLOBAL E-COMMERCE:
- MARKET SIZE (EXPECTED: $5.55 trillion in 2022): The e-commerce (online sales) market is expected to total $5.55 trillion in 2022, accounting for 21% of total retail sales ($26.42 trillion). Two years ago only 17.8% of sales were made online.
- MARKETS SIZE (EXPECTED: $7.3 TRILLION IN 2025, UP 30% FROM 2022): The global e-commerce market is forecast to be over $7.3 trillion in 2025, compared to 2021’s $4.921 trillion. E- commerce worldwide is expected to represent 24.5% of all global sales IN 2025, up from 19.6% in 2021 and 17.8% in 2020.
- MARKET SHARE BY COUNTRY: China is estimated to claim 52.1% of the global market, USA with 19% , UK with 4.8% and Japan with 3.0%. Rest of the world covers 21.1%.
- MARKET SHARE BY COMPANY AND BY SALES: Alibaba (Taobao and Tmall) claimed 24.00%, while Amazon took up 13% of the globals e- commerce market. JD.com claimed 9.20% of the market.
CHINA E-COMMERCE:
- MARKET SIZE ($2.89 trillion): The Chinese e-commerce market was $2.89 trillion in 2021. The Chinese market grew at 17.7% per year since 2017.
- MARKET GROWTH POTENTIAL (TO INCREASE ITS GLOBAL SHARE TO 45% BY 2025 TO $3.3 FROM CURRENT $2.1 TRILLION): Chinese e-commerce value may be expected to grow at a strong average growth rate (annually) of 11.6% between 2021 and 2025 to reach CNY21.4 trillion (US$3.3 trillion) in 2025. That would be 45% of estimated global e- commerce sales of $7.3 trillion in 2025.
- MARKET SHARE: Alibaba (Taobao and Tmall) is the largest online retailer in China with 47.1% market share. JD.com is second, capturing 16.9%, while Pinduoduo covers 13.2% of the Chinese E- commerce markets.
ALIBABA (ANALYSIS AND EVENTS)
- THE COMPANY: Alibaba is the world’s second largest online retailer by market capitalization and the largest in China. It was founded by Jack Ma, a billionaire and one of the richest men in China.
- EARNINGS GROWTH and FUNDAMENTALS: Alibaba’s earnings grew over 182% over the past year. Alibaba’s forward P/E is 11.99, below the industry median of 17.92. Alibaba’s closest competitor in China, JD.com trades at a forward P/E of 31.72 and Amazon’s forward P/E is 88.92.
- MARKET GROWTH POTENTIAL: Alibaba’s revenue could be expected to grow to over $185 billion per year in 2025 from current $105 billion, at a compounded annual growth rate of 15% per year. Its cloud computing revenue may be expected to climb from $8.9 billion in 2021 to $23 billion in 2025. Cloud computing is the most profitable segment of its business.
- EVENT: Alibaba is scheduled to post its earnings and revenue in November. Alibaba posted outstanding financials on August 4th, 2022. The company earned $1.77 per share, and over $31 billion in revenue. Those figures beat forecasts by 16.18% and 3.09% respectively. Alibaba has exceeded earnings forecasts 6 of the last 8 quarters.
- ANALYST OPINION: The consensus 12-month target is $151.22, according to Bloomberg. Nomura set a price target of $145 on September 19th. Jefferies reiterated its target of $230 on September 9th, and Barclays, on September 7th, set a price target of $161.
- UPSIDE POTENTIAL: Alibaba’s current price would need to rise over 260% to reach its all-time high ($319.92: October 2020).
Please note that past performance does not guarantee future results.
(#ALIBABA), September 20, 2022
Current Price: 88.00
Alibaba |
Weekly |
Trend direction |
|
138.00 |
|
123.00 |
|
108.00 |
|
76.00 |
|
63.00 |
|
48.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
Alibaba |
||||||
Pivot Points |
||||||
Profit or loss in $ |
50,000.00 |
35,000.00 |
20,000.00 |
-12,000.00 |
-25,000.00 |
-40,000.00 |
Profit or loss in €2 |
49,841.50 |
34,889.05 |
19,936.60 |
-11,961.96 |
-24,920.75 |
-39,873.20 |
Profit or loss in £2 |
43,671.17 |
30,569.82 |
17,468.47 |
-10,481.08 |
-21,835.59 |
-34,936.94 |
Profit or loss in C$2 |
66,295.00 |
46,406.50 |
26,518.00 |
-15,910.80 |
-33,147.50 |
-53,036.00 |
- 1.00 lot is equivalent of 1000 units
- Calculations for exchange rate used as of 08:51 (GMT+1) 20/09/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
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