Alibaba Hovering Above All-Time Lows Despite Bullish Commentary
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Alibaba Group Holding Ltd (NYSE: BABA) shares were trading lower $0.40 at $80.77 in Monday's session. Despite bullish comments from MKM Partners and Morgan Stanley, the issue is flirting with new all-time lows.
MKM Partners maintained its Buy rating, but reduced the price target from $125 to $115. Morgan Stanley maintained its Overweight rating, stating the Street may be focusing too much on the hiring freeze announced last week.
After a flat open, it rallied to $81.56 before reversing course. On the decline it found support a very familiar area, just above its all-time low of $80.03 that was made on March 3. Today's attempt to breach that critical level was fourth time it has tried break into the $70 handle for the first time ever.
Even at the $80, it is still well above the level it was initially priced ($68) at for its debut on Wall Street back in September 2014.
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