Alibaba Group Holding Limited

BABA Details

Alibaba Group Holding Limited (NYSE: BABA) is a holding company that provides merchants, brands, and other organizations with a technical framework and advertising reach to help them utilize the power of innovative technology to communicate with their customers and run more efficiently. BABA has four business segments: 1) Core Commerce, 2) Cloud Computing, 3) Digital Media and Entertainment, 4) Innovation Projects and others. BABA has 2.72 billion American Depository Shares (ADS) listed and outstanding (each ADS representing eight ordinary shares).

Latest News:

Robust Q2FY22 Results:

Key Risks:

Outlook:

Valuation Methodology: Price/Cash Flow Per Share Multiple Based Relative Valuation

(Analysis by Kalkine Group)

BABA Daily Technical Chart (Source: REFINITIV)

Stock Recommendation:

BABA's share price has fallen 50.87% in the past twelve months and is currently leaning towards the lower band of the 52-week range of USD 108.70 to USD 274.29. The stock is currently trading far below its 50 and 200 DMA levels, and its RSI Index is at 38.62. We have valued the stock using the Price/Cash Flow multiple based relative valuation methodology and arrived at a target price of USD 156.38.

Considering the growth prospects, significant track record, strong balance sheet, market dominance, associated risks, and current valuation, we recommend a "Buy" rating on the stock at the current price of USD 125.78, up 2.90% as of December 14, 2021, 12:20 PM ET.

*All forecasted figures and Industry Information have been taken from REFINITIV.

*The reference data in this report has been partly sourced from REFINITIV.

*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.

Activision Blizzard, Inc.

ATVI Details

Activision Blizzard, Inc. (NASDAQ: ATVI) operates as a developer and publisher of interactive entertainment content for video game consoles, personal computers (PC) and mobile devices. Its operating segments are 1) Activision Publishing, Inc., which offers the Call of Duty League franchise, 2) Blizzard Entertainment, Inc., which is engaged in the digital distribution of Blizzard and Activision games, online social networking, and user-generated content development and 3) King Digital Entertainment, whose key offering is Candy Crush saga.

Latest News:

Q3FY21 Results:

Key Risks:

Outlook:

Financial Outlook (Source: Q3FY21 Earnings Presentation, November 02, 2021)

Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation

(Analysis by Kalkine Group)

ATVI Daily Technical Chart (Source: REFINITIV)

Stock Recommendation:

ATVI's share price has declined 38.21% in the past six months and is currently leaning towards the lower-band of the 52-week range of USD 56.40 to USD 104.53. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at 34.05. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 70.37.

Considering the correction in the stock price in the past six months, strong profitability margins, current valuation, and associated risks, we recommend a "Buy" rating on the stock at the current price of USD 59.30, up 1.02% as of December 14, 2021, 12:32 PM ET.