BABA stock confirmed an uptrend channel breakout on November 27, 2019, with a bullish breakaway gap up.

finviz dynamic chart for  BABA

On November 29, 2019, Baird analyst Colin Sebastian said he remains comfortable with his holiday season e-commerce forecast, saying he expects a solid 14%+ online spending growth over the key holiday shopping season, with fewer days between Thanksgiving and Christmas likely benefiting Amazon (AMZN) and traditional retail. The analyst said that overall e-commerce volumes seem to be tracking in line per Adobe data. Global e-commerce volume growth is tracking at greater than or equal to 20%, Sebastian added. The analyst also noted that his proprietary tracking of Shopify (SHOP) volumes indicates holiday volumes are up roughly 60% year-over-year, above his total fourth quarter gross merchandise volume growth estimate of about 45%. Sebastian has an Outperform rating on Amazon, Shopify, Alibaba (BABA), eBay (EBAY), and PayPal (PYPL).

We detected bullish options flow in BABA stock on November 29, 2019:

Bullish options flow detected in BABA stock on November 29, 2019

Click here to download the complete options flow in BABA stock on November 29, 2019, in CSV format.

On November 26, 2019, Alibaba raised $11.2B in Hong Kong in the largest offering of any kind in the territory since 2010, the New York Times’ Alexandra Stevenson reports, citing data from the stock exchange. Alibaba shares completed its first day of trading at $23.95, up 6.5% and the money raised will be added to the company’s cash pile, which currently stands at $43B.

Japanese Wealth Management company Saikyo Sakura Assets has commented on the recent rally in Hong Kong stock markets. The Hang Seng Index surged over 1.5 percent with 47 out of the 50 constituent stocks showing gains.

Chinese financial markets also reacted positively with the Shanghai Composite Index rallying towards 1 percent gains.

These financial gains have been due to the election results that came out on Sunday, with the pro-democracy camp officially winning 17 out of 18 district councils, all of which had previously been under pro-establishment communist Chinese control.

With the escalating protests in Hong Kong, it had seemed to weigh heavily on market sentiment since violence erupted in the beginning of July; however, the new results are viewed as calming the protesters.

I think investors could be reading Hong Kong’s recent elections completely wrong. The election results embarrassed China’s communist party officials which increases the chances of a violent crack down by the Chinese army.

“Numerous companies have reacted positively, showing significant percentage gains such as Sun Hung Kai Properties, the company rose 3 percent.” Observed Anthony Brown, Head of Wealth Management at Saikyo Sakura Assets.

Saikyo Sakura Assets noted that other notable reasons which helped the Hang Seng rally were due to the growing optimism of a partial trade deal between Beijing and Washington.

“Alongside positive news from trade talks, the election results have proven successful to end protests and restore stability within Hong Kong. Market sentiment has already reacted confidently to the news hence the rallies we see in the financial markets.” Added Frank Hunter, who heads up the Corporate Derivatives division at Saikyo Sakura Assets.

On November 27, 2019, HSBC initiated coverage of Alibaba with a Buy rating and HK$241 price target.

Meanwhile, China continues to expand its power and influence in Africa. On November 25, 2019, H. E. Ethiopian Prime Minister Abiy Ahmed, Alibaba Group founder Jack Ma, and Alibaba Group Director and Ant Financial Services Group Chairman and CEO Eric Jing witnessed the signing of three Memoranda of Understanding, or MoU, between the Ethiopian Government and Alibaba establishing an eWTP Hub in Ethiopia. The eWTP, or electronic world trade platform, Hub is intended to enable cross-border trade, provide smart logistics and fulfillment services, assist Ethiopian small and medium-sized enterprises, or SMEs, to reach China and other markets, and provide talent training. Ethiopia aims to build a dynamic and growing digital economy that contributes significantly to overall economic growth in the country.

BABA stock has really become the quintessential play if you believe in an expanding Chinese communist empire that has become so powerful that it’s really unstoppable at this point.