AlibAlibaba

Alibaba (NYSE: BABA) stock price has failed to join the global stock rally of 2023. The US-listed Chinese ecommerce giant has remained sideways amid a massive recovery in US stocks. However, after the announcement of its Q2 results on Thursday, the stock seems to be finally gaining some momentum.

On the other hand, PENN (NASDAQ: PENN) stock has lost most of its weekly gains after its recent earnings report. Although the earnings report beat the consensus estimates, the stock still experienced a massive sell-off on Wednesday. Penn National Gaming reported second-quarter earnings of $0.31 per share, beating analysts' expectations of $0.27 per share.

Alibaba Posts Record Revenue Increase

Alibaba reported strong earnings for the first quarter of 2024, with revenue up 14% year-on-year to $30.3 billion. Net income was $10.2 billion, up 25% from last year's period. The company's cloud computing business continued to grow, with revenue up 33% to $18.7 billion. Alibaba also announced investing $10 billion in its technology infrastructure over the next five years.

Alibaba Stock Price Forecast

The chart of NYSE: BABA shows a prolonged sideways price action on a higher timeframe. This price action has occurred within the $73-$125 trading range. After the release of yesterday’s earnings release, the stock has broken above the key psychological level of $100.

Alibaba price forecast will flip very bullish if the price gains strength above $100 level. In this case, I expect a major bullish move towards the $125 level, which lies 25% above the current stock price.

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PENN Entertainment Reverses Its Gains From ESPN Deal

In its Q2 financial results, PENN Entertainment’s revenue came at $1.7 billion, up 30% from the same period last year. The company's digital gaming business continued to grow, with revenue up 62% to $345 million. Penn National has recently also partnered with ESPN. The partnership will create ESPN Bet, a sports betting app offering odds, fantasy sports, and other gaming products. The app is expected to launch in the first half of 2024.

The partnership caused a massive surge in PENN stock price, which soared to $29.40, its highest level since May 3. However, the earnings report failed to impress the investors, and the stock tanked on Wednesday. On Thursday, the stock kept plummeting and was down 3.91% until press time.

PENN Stock Price Forecast

The following NASDAQ: PENN chart shows a clear formation of the falling wedge pattern. This pattern is considered a bullish pattern in case of an upwards breakout. After the ESPN deal, the stock broke out of this pattern but failed to close a day above it. The move turned out to be a fakeout due to the rejection from the 200-day moving average. Nevertheless, if it holds a $24 level, I expect another bullish leg in the coming days.

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