Should You Buy Alibaba Stock? Forecast for 2023

Posted by:Alex Belov Posted on:Nov 22,2022

Alibaba (BABA) stock hit its lowest in several years. As of November 22, 2022, the shares are trading at around $77. Should You Buy Alibaba (BABA) Stock Now? Wall Street analysts are positive about the company.  Most Wall Street analyst firms have given Alibaba (BABA) stock a Buy rating and an average price target of $138 over the next 12 months. Possible growth potential from current levels is more than 80%.

Growth drivers

— Analysts expect an easing of covid policies in China. This will have a positive impact on the recovery of domestic demand. However, a quick economic recovery should not be expected as China begins to impose restrictions again due to new outbreaks of the coronavirus. This is now having a negative effect on the quotes of Chinese companies. Expect easing of restrictions is not earlier than spring.

— The company plans to change its listing status in Hong Kong and enter Hong Kong Stock Connect. This means that Alibaba shares will become available for trading in mainland China. Most Chinese don’t have Alibaba shares in their portfolio right now. Once they are included in the Stock Connect system, the interest of individuals from mainland China will increase, and this can become a powerful growth driver.

– Alibaba founder Jack Ma can return to public life again and have a positive effect on quotes with his statements.

Overall, analysts are positive about Alibaba’s outlook for 2023. Recent financial reports indicate that the company remains financially sound in such a volatile time thanks to a large cash cushion.

The tech sector has been hardest hit by the collapse in the Chinese market. The easing of covid restrictions in 2023 will have a positive effect, and China’s technology companies may show outperforming growth. At the same time, Alibaba shares will have a weight advantage over other Chinese technology companies, as the paper will become available to investors from mainland China.

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Alex Belov

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