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Alibaba (NYSE:BABA) shares fell about 5% in Thursday's pre-market trading after the Chinese e-commerce firm reported weaker-than-expected quarterly revenue.
The company generated 236.45 billion yuan (US$32.79 billion) in revenue for the fiscal fourth quarter ended March 31. Analysts surveyed by LSEG had expected 237.24 billion yuan.
Alibaba is navigating a tough retail environment as Chinese consumers cut back on spending due to economic uncertainty and high unemployment. Price-sensitive behavior has fueled heavy discounting across major e-commerce platforms.
That has intensified competition between Alibaba, JD.com (NASDAQ:JD), and Pinduoduo parent PDD Holdings (NASDAQ:PDD), as each seeks to maintain market share with steep promotions and flash sales.
The results contrast with those of JD.com, which earlier this week beat first-quarter revenue estimates and cited accelerating user growth.
Is BABA Stock a Buy Now?
Based on the one year price targets offered by 38 analysts, the average target price for Alibaba Group Holding Ltd is $161.06 with a high estimate of $193.10 and a low estimate of $102.44. The average target implies a upside of +20.15% from the current price of $134.05.
Based on GuruFocus estimates, the estimated GF Value for Alibaba Group Holding Ltd in one year is $110.22, suggesting a downside of -17.78% from the current price of $134.05. For deeper insights, visit the BABA Forecast page.
This article first appeared on GuruFocus.