Yahoo Finance Exclusive: The Steady Trader Explains What Alibaba's Stock Needs To No Longer Be A Gamble
Serge Berger was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.
Among several topics and stocks, including GoPro Inc’s (NASDAQ: GPRO), The Steady Trader and Investment Strategist talked about Alibaba Group Holding Ltd (NYSE: BABA).
Shares of Alibaba are slowly recuperating, after plummeting more than 21 percent in the last three months.
On Wednesday, a lockup period expired, and insiders owning a total of 337 million Alibaba shares are now allowed to sell them. Another lockup expiring in May will allow the sale of an extra 100 million shares owned by employees. An even larger lockup of more than a billion shares held by insiders, including Yahoo! Inc. (NASDAQ: YHOO), expires in September.
A Reuters article explained that “some investors are worrying about further drops in the stock as insiders sell.”
Now, Berger sees one question as crucial: will the stock break above $86?
“On that beautiful rally day (...) the 4th of March, I actually posted something on Benzinga on the significance of that day. And I think you actually mentioned Jay Z before; he mentioned that as well at some point. And I think that was, for me, price-action point of view, an important day.
“Now, it doesn’t mean you immediately see follow-through breakout... you can see a recess from the lows (...) but it hasn’t fallen apart, even after yesterday’s lockup. So, to me, that still puts a lot of significance on that big monster rally day.”
Bottom line, Berger thinks the stock needs to get above $86.
“As long as it doesn’t get above $86 –unless you are day trading- it’s a gamble.”
Check out the full interview below:
Latest Ratings for BABA
Mar 2015 | Stifel Nicolaus | Upgrades | Hold | Buy |
Mar 2015 | Axiom | Initiates Coverage on | Buy | |
Feb 2015 | Oppenheimer | Maintains | Outperform |
View More Analyst Ratings for BABA
View the Latest Analyst Ratings
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