How Alibaba Deals with Troubled Times?

How Alibaba Deals with Troubled Times?

2023-03-10 • Updated

The e-commerce giant has recently faced a lot of pressure, starting from global uncertainty in China amid lockdowns and geopolitics. The company has been added to the US SEC (Securities and Exchange Commission) delisting queue. Finally, there’s an earnings report coming on August 4. Let’s discuss everything and prepare for the next move.

Alibaba delisting meaning

Tensions between US and China began in 2018 when US President Trump decided to “make America great again” and started a trade war between the two countries. The dispute included tariffs and quotas on imports from China, which also responded with tariffs on US goods. That was the start of the conflict.


Source: Peterson Institute for International Economics

Years later, in February 2022, US president Biden extended tariffs on certain types of goods, including solar panels and cells. While Alibaba doesn’t produce these panels, the overall level of tension kept escalating until on July 29 the US SEC added Alibaba to a list of companies that may be delisted from the US exchange.

A few took in consideration the law issued in 2020 that provides the opportunity to delist the company from an exchange if it has a foreign jurisdiction. Another criterion is that a foreign company hasn’t issued the audit report. Combined, the US SEC has all the needed reasons to ban Alibaba. The company should submit the audit report by August 19, 2022. That’s not rocket science to understand the low likelihood of a peaceful solution to the conflict, especially amid growing Taiwan tensions.



Alibaba’s US-listed shares extended their declines for the third week and have slumped 29% in July, closing the month below the $90.00 round number. The delisting analysis tells us the plunge in stock will continue. Let’s talk about the upcoming earnings report to grasp all. 

Alibaba earnings report and price forecast

Alibaba will release its earnings report on August 4, before the market opens. Analysts expect the EPS to be $1.52 with a revenue of $31.02 billion. In June, the company reported $1.93 per share with a revenue of $32.19. This time, the estimated decrease is low, and the company expects rather good results.



The 47 analysts offering 12-month price forecasts for Alibaba Group Holding Ltd have a median target of 150.17, with a high estimate of 230.03 and a low estimate of 104.43. The median estimate represents a +66.15% increase from the last price of 90.37. However, I think most analysts aren't taking into consideration the most negative scenario which is a delisting and a bad economic outlook due to the Chinese lockdowns.

As for the chart, the stock is trying to hold above the demand zone (red), but the fourth touch of the area will likely lead to a breakout.

Alibaba daily chart

Resistance: 137.80, 183.00, 210.00

Support: 77.00, 55.00, 40.00


If disagreements between US and China continue, we’ll likely see a delisting of the stock, leading to a massive outflow of the capital from it and other Chinese stocks traded on US exchanges. This situation is rare, and my target for this movement is in the $40-55 support area.

Do you want to get updates Live? Subscribe to the @FBSAnalytics Telegram Channel where I post more daily trade ideas!



Stocks To Watch For March
Stocks To Watch For March

During his program on CNBC on February 28, Jim Cramer expressed frustration with the impact of earnings reports on market behavior, noting how they often prompt rash decisions by average investors. He criticized the short-term focus and lack of attention to nuance in news coverage of earnings. Cramer cited examples of Home Depot and Lowe's, highlighting how investors reacted hastily to headline news without considering the broader context provided in earnings calls.

Jingle Bulls: How Will The Santa Rally Impact Amazon And Apple?
Jingle Bulls: How Will The Santa Rally Impact Amazon And Apple?

As the year winds down and the festive spirit takes hold, the stock market often presents a curious yet anticipated phenomenon known as the Santa Rally. Within this whirlwind of festive trading, let’s look at how two titans of the tech world, Amazon and Apple, might fare during this unique season.

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera