Stock values rise and fall for many reasons. An inaccurate quarterly report, the sudden success of a competitor, or an overall dip in the Dow Jones Industrial Average can lead to a fall. Positive press, the emergence of new technologies, and general upswings in the market can lead to a rise in individual stock values. The alibaba stock price today is less subject to these variables than any other stock.
While this is certainly not an advertisement to buy alibaba stock, it uses that stock as an example of how the market fluctuates, and why that should not always be a cause for concern or a reason to sell. Rather, this is a review of the recent analyses concerning the stock's moderate price dip and possibility for rebound. Below are a list of factors investors should take into consideration when dealing with alibaba stock or any other.
The alibaba stock price dipped 1.6% to an all-time low of $58 per share in late September of 2015. Is this cause for concern? Perhaps, but there are factors that should be kept in mind. This dip occurred immediately after the market opened the morning of September 24th. The dip was a reaction to what had happened before, as opposed to what was happening during that day. Stock dips of less than 5% that occur right after the opening bell are not always an indication of a crash.
The above being said, stocks that dip at the beginning of the day often rebound to higher levels before the close of the market or in the following days. By October 8th, even after Alibaba's split from Yahoo, Inc., its stock had climbed by 18.1%.
When companies split off, as Alibaba did from Yahoo, a sip in stock value is almost inevitable. However, it the company has a track record of innovation, strong management, and fb stock independent success, this can be an opportunity for investors to purchase even more of the stock at a substantially lower price. Remember, branches of companies split for a variety of reasons, some of which are quite positive.
The split enabled Alibaba to purchase a the $3.6 billion corporation Youku Tudou (a Chinese video company). This is a prime example of a split having a positive result.
The above analyses have led analysts to believe that Alibaba's value will continue to rebound and increase in 2016 and beyond. While no analysis is an absolute prediction of future events, this review shows how investors, when carefully considering all angles, can put themselves in the best possible position to earn money.