Alibaba Group Holding Limited (NYSE:BABA) isn’t selling cloud infrastructure, but unique AI services built on open source
Alibaba Group Holding (NYSE:BABA) has never been Amazon.Com (NASDAQ:AMZN). It wasn’t founded to sell consumer goods. Its cloud isn’t challenging Amazon in infrastructure. And in the past six months, BABA stock has suffered a drop about two times that seen by AMZN shares.
Instead of selling raw infrastructure, Alibaba is developing software services that let companies design products for specific markets and get them through distribution channels. That’s the strategy that led them recently to buy Data Artisans, a Berlin-based software company, for $103 million. Data Artisans dominates in the development of Apache Flink, an open source data processing system.
So, while Amazon sells infrastructure, and Microsoft (NASDAQ:MSFT) sells a platform, in other words, Alibaba has gone up the stack, like Adobe (NASDAQ:ADBE), selling a unique solution.
Alibaba today is a unique value proposition. It’s not the Chinese Amazon. It’s not even a “Cloud Czar” in the way of Amazon and Microsoft. And it’d be wrong to look at BABA stock as you would be shares of those others.
Alibaba is what it has always been, a software company dedicated to moving markets from the 19th to the 21st century. Like Amazon, it uses distribution and retailing for the financial scale needed to grow, and as a demonstration of what its cloud does. Beyond that, it’s something completely different — just like Alibaba stock.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 162.25.
The projected lower bound is: 139.85.
The projected closing price is: 151.05.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 71.6863. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 57.44. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 13 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 96. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed up 1.610 at 150.880. Volume was 16% below average (neutral) and Bollinger Bands were 7% wider than normal.
Open High Low Close Volume___
150.400 154.170 149.980 150.880 3,894,691
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 145.20 147.68 170.57
Volatility: 56 49 43
Volume: 3,646,978 4,465,350 4,250,083
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
ALIBABA GRP ADR is currently 11.5% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BABA.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BABA.N and have had this outlook for the last 1 periods.
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