Business

Alibaba Group Holding Ltd ties up with Apple Inc: Seen as a huge positive

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alibaba, apple, alipay, iphone, mobile payments, targetAlibaba Group Holding Ltd  (NYSE:BABA) has been in the news recently when certain merchants and retailers like Target, Best Buy and Home Depot joined hands and released a campaign accusing the company of using predatory practises and taking advantage of an online tax loop hole which they believe would run traditional business houses into ground. Even though, Alibaba has a minute share of the American e-commerce space, the coalition of brick mortar stores wants to attack the ecommerce giant before it makes inroads into the US market place and starts eroding market share.

In some other news, Alipay,  the e-payment arm of the tech giant announced that it would now allow Apple users to pay for products through its app by using just finger-prints which is being seen as a huge positive as it allows Alipay to integrate itself with the Apple ecosystem. Analysts for the stock at the current moment are closely monitoring the growth conditions in China and the credit markets as many believe that if the Chinese economy slows down, it might affect the overall growth trajectory for the company in the near term which is a huge negative. Analysts overall are very bullish on the stock and have a consensus buy rating for the stock.

 

When looking at the daily charts for Alibaba Group Holding Ltd  (NYSE:BABA), the stock has been in a strong uptrend right from the time of listing but is currently showing first signs of exhaustion at higher levels. The stock trades above all important daily moving averages. The momentum indicators for the stock have given a sell signal. The relative strength index is showing no signs of a bullish reversal which is a negative sign.

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