Alibaba Group Holding Ltd.’s earnings are expected to be strong when the company reports its third-quarter numbers before the market opens for trading today.
The Chinese e-commerce giant, competes with Amazon.com Inc. and MercadoLibre in South America. MELI is on our radar this week in addition to AMZN and BABA.
“Last quarter, Alibaba BABA, +2.45% opened four new data centers—Dubai, Australia, Japan and Germany—as part of an effort to build out cloud-computing business Alibaba Cloud, a competitor to Amazon’s Amazon Web Services.” – Source: MarketWatch
FactSet anticipates Alibaba will report adjusted profit of $1.12 a share on Tuesday morning, compared with 99 cents a share in the year-earlier period.
BABA is presently building the right side of a cup pattern. RSI continues to rise, as price broke out of a brief consolidation pattern on Monday. We closed above the 9ema. MACD, STO and volume all suggest higher prices are in order for Alibaba, should earnings guidance be positive for future quarters.
AMZN is completing its cup pattern with a handle. BABA earnings will likely lift AMZN prices should BABA beat and guide higher for future earnings. RSI continues to rise, with MACD and stochastic. EPS
MercadoLibre, Inc. (MELI) hosts online commerce platforms in Latin America. It offers MercadoLibre Marketplace, an automated online e-commerce service for businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format. – Source: Yahoo Finance
MELI looks very similar to AMZN and BABA in most respects.
Investors Business Daily ranks the group accordingly. TCX is at the top of the list, as we pointed out yesterday when the stock subsequently bolted 5 points higher. Check out its chart.
A lot of eyes will be on BABA this morning, as will ours, as we broadcast LIVE again on Tuesday.
Happy Trading – Vinny
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up;
Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.