Alibaba Group Holding Ltd (BABA): Perfect Time To Buy
Alibaba Group Holding Ltd (NYSE:BABA) held firm in the market on the expiration of the lock-up period much to the surprise of many investors who had expected the stock to dip. Kelly-Haft financial partner, Alan Haft, believes what was experienced after the lock-up expiration is an indication of how rock solid the company is. During an interview on CNBC, Haft reiterated that Alibaba remains a strong buy as all the concerns that have been pounding the stock are now behind it.
Twitter Inc (NYSE:TWTR) in contrast tanked by nearly 20% on the expiration of its lock-up period and has since found it hard to recover an indication of how strong Alibaba fundamentals are, according to Haft.
“Today I think Alibaba showed its resilience in the marketplace today and how strong of accompany it is for the long term given that the stock price didn’t really move. There were lots of expectations last 24-48 hours that the stock was going to tank today, and there was a lot of buoyancies there was a lot of buying going on the stock,” said Mr. Haft.
Alibaba Group Holding Ltd (NYSE:BABA) remains a buy for investors looking for a long-term play as the lock-up expiration is now behind the stock. Haft affirms that Alibaba could still be a good buy for short term investors and believes there is no possibility of a further decline similar to the 30% decline on touching highs of $120 a share.
A lot of hedge funds have dumped the stock in the wake of the stock touching record highs of $120 a share, but that should not be a point of concern for long-term investors according to Haft. Alibaba Group Holding Ltd (NYSE:BABA) however remains a perfect stock to hold for investors looking to recoup their investments in three to five years according to the analyst.
“Remember a lot of the hedge funds are looking for short term profits on stocks so if somebody is buying into Alibaba Group Holding Ltd (NYSE:BABA) today, they should ask themselves are you an investor or are you a gambler. [..] I don’t think anybody that is looking for a short term pop on the stock this is the right place to be,” said Mr. Haft.
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