Alibaba Group Holding Limited (NYSE:BABA) Payment Affiliate Eyes European Consumers With Klarna Stake
Alibaba‘s (NYSE: BABA) payment affiliate, Ant Financial, has acquired a stake in Klarna, a European fintech company, strengthening an existing relationship between the two.
In a blog post, Klarna said Ant has taken a minority stake in the app that lets consumers “buy now and pay later.” An unidentified source told Reuters that Ant Financial’s stake is less than 1%.
Klarna picks up the tab for consumers and then invoices them for payment. Customers generally have 14 to 30 days to pay for their purchases. The service has reportedly resonated with millennials who are skeptical of using credit cards. Klarna has a customer base of 85 million people who are using the app online and in stores. It now has relationships with more than 200,000 retailers and e-commerce platforms including AliExpress, Alibaba’s international e-commerce platform. With a valuation of $5.5 billion, the Snoop Dogg-backed company is Europe’s most valuable fintech.
Sebastian Siemiatkowski, CEO of Klarna, told Reuters the deal should enable the company to expand into new markets around the world. He said Klarna will stay away from China, where competition is fierce and innovation in the app retail and payments markets is “just tremendous.” Ant Financial operates AliPay, a payment app in China, and is looking to expand that service internationally.
This investment comes at a time when Chinese companies are taking a beating over the coronavirus that has now killed about 3,000 people and infected aobut 91,000 . This week AliExpress warned customers that they may face delivery delays a result of the epidemic. By deepening its partnership with Klarna, Ant can have a piece of expanding into European markets and access Klarna’s network of European merchants.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 223.71.
The projected lower bound is: 200.28.
The projected closing price is: 212.00.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
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 80.2644. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 48.67. 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 sell 33 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 -15. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 8 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed up 4.550 at 211.960. Volume was 15% below average (neutral) and Bollinger Bands were 4% wider than normal.
Open High Low Close Volume___
210.000 212.700 208.880 211.960 3,288,455
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 209.45 216.29 184.79
Volatility: 35 35 36
Volume: 5,076,882 3,578,798 3,605,925
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 14.7% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of BABA.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BABA.N and have had this outlook for the last 26 periods.
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