Alibaba (BABA) shares need a pick-me-up after losing over a quarter of their value in 2018. Singles Day, the biggest shopping day in China, may be just the ticket.
Alibaba stock is still sliding ahead of the big day on Sunday, as trade bluster heats up on Friday, but that could create value ahead of such a catalyst.
Alibaba is often compared to Amazon (AMZN) given its similar business model. However, what sets Jack Ma's business from Jeff Bezos' brainchild is the reachable clientele.
Given the proximity of Singles Day, it is worth comparing to the largest sales day for Amazon.
Alibaba's over 700 million active users provides for a superior revenue base to Amazon in its ecommerce business alone, as reflected in the one day trends.
Ahead of the event, some traders might be eyeing a play based on the depressed state that trade talks have driven shares into.
"BABA has fallen so fast that it is actually starting to look like a value," James "Rev Shark" DePorre pointed out in his trading column on Real Money this morning. "With a stock like BABA it is important that it proves itself before you put your hard earned money at risk."
There are certainly large scale risks brought on by geopolitical jostling, as Jack Ma himself has acknowledged.
However, as investors stare down a sales day that could bring on $30 billion or more in revenue, that proof could be coming in short order.
