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Alibaba Stock Still a Buy Despite Fears of Big Money Sell-Off

Alibaba stock, which has been battered this whole year, is facing further challenges as a lockup period on 340 million shares of the company has expired.

That means institutional investors who bought Alibaba Group Holding Ltd. (NYSE: BABA) stock pre-Alibaba IPO now have a chance to cash-in on shares that were previously bound by a lockup agreement that forbid their sale.

Alibaba stock is already down about 18.7% this year. Chinese growth concerns explain why Alibaba stock is falling this year. Investors had further fears that this lockup expiration would prompt a mass sell-off of Alibaba by the big money stakeholders.

However, Alibaba stock is actually up today (Wednesday) a slight 0.3%.

Right now, Alibaba stock is a buy. It's cheap, and fears of institutional investors fleeing the troubled stock are unfounded. Money Morning Capital Wave Strategist Shah Gilani explained why in an appearance on FOX Business' "Varney & Co." today.

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  1. ray | March 22, 2015

    Alibaba p/e and p/s are both way too high… competition within china is also heating up ..wal street expectations on growth on top and bottom line exceeds what the firm can actually monetize in 2015…april earnings will easily cone in below expectation given measures to prevent fradulent sales on their site…near term short to 75 $

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