BABA(BABA) zacks.com·2024-05-24 12:10Core Viewpoint - Alibaba (BABA) is currently rated as a Zacks Rank 5 (Strong Sell) due to declining earnings estimates despite a recent earnings beat [1]. Company Overview - Alibaba Group Holding is a leading e-commerce giant in China, having evolved from a traditional e-commerce company to a conglomerate with diverse businesses including logistics, food delivery, and cloud computing [2]. Earnings History - The company has a mixed earnings history, with three beats and one miss against the Zacks Consensus Estimate. The latest quarter showed a beat with earnings of $1.40 compared to an expectation of $1.24. However, this performance alone does not justify a strong buy or sell rating [3]. Earnings Estimates - Recent trends indicate a downward revision in earnings estimates for Alibaba. The current year (2024) consensus has decreased from $8.99 to $8.26 over the past 60 days, while the next year's estimate has dropped from $10.10 to $9.17 in the same timeframe. This negative movement in earnings estimates is a key factor contributing to the stock's Zacks Rank of 5 (Strong Sell) [4].