Investors in Chinese stocks, long-accustomed to pain, have just seen an astonishing turnaround. What comes next? Shares in Chinese tech giants Alibaba (ticker: BABA) and JD.com (JD) both notched eye-watering gains on Wednesday, climbing 37% and 39%, ...
Alibaba stock has fallen 5.3% on Thursday, while JD.com has declined 4.1%. Shares in Chinese tech giants Alibaba (ticker: BABA) and JD.com (JD) both notched eye-watering gains on Wednesday, climbing 37% and 39%, respectively. Alibaba and JD.com Stocks Are Dropping a Day After Their Largest Gains Ever. What Now?
The Chinese tech giant remains a polarizing investment. ... Alibaba ( BABA -0.11% ), the largest e-commerce and cloud infrastructure company in China, went public ...
That ongoing decline will make it difficult for Alibaba to support the growth of its unprofitable cloud, digital media, and innovative initiatives segments -- which expand its sprawling ecosystem into adjacent markets -- with the commerce segment's profits. It blames that slowdown on macroeconomic and competitive headwinds for its retail business -- which have been exacerbated by the antitrust restrictions -- as well as a loss of large internet customers at Alibaba Cloud. Therefore, Alibaba's near-term growth may be hampered by new regulations and macroeconomic challenges, but its Chinese commerce business -- which served 979 million annual active consumers in its latest quarter -- could still grow at a stable clip over the long term. By comparison, Alibaba was valued at about 14 times its fiscal 2025 sales when it listed its IPO shares at $68 for a valuation of $168 billion in Sept. 2014. As for the delisting threats, China's Securities Regulatory Commission (CSRC) recently expressed its confidence in reaching an agreement with the SEC to resolve the auditing dispute before any firms are actually delisted. The variable interest entity (VIE) structure, which circumvents China's restrictions on foreign investments in sensitive sectors like technology and education, could also be outlawed. Its revenue rose 35% in fiscal 2020 and 41% in fiscal 2021 (which ended last March), but analysts anticipates just 20% growth in fiscal 2022 and 15% growth in fiscal 2023. But as of this writing, Alibaba's stock has dropped to the low $70s, and it could retest its IPO price. Alibaba ( BABA 1.29% ), the largest e-commerce and cloud infrastructure company in China, went public on Sept. 19, 2014 at $68 per share. First, the Chinese government clearly plans to stymie its long-term growth. It also forced it to abandon its exclusive deals with top merchants, restricted its collection of customer data, and barred it from using steep promotional discounts to gain new shoppers. In addition, Alibaba was fined for failing to report several previous investments, and it's now required to seek out the government's approval for all of its future business deals.
Technology stocks led a rebound in Chinese markets, as investors seized on supportive comments from top Chinese economic policy makers.
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Instead, they're buying shares in a 'variable interest entity' (VIE) that is a separate company that has contracts that give it a claim on Alibaba's assets and earnings. Why does such a thing exist? Because under Chinese law, it's illegal for Alibaba to ...
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After months of declines and underperformance, the ADR (American Depositary Receipt) of Alibaba (NYSE:BABA) closed about 37% higher on Wednesday.
However, the massive drop in Alibaba’s stock price and compression of its valuation has kept most Wall Street analysts bullish. Yao expects BABA stock to trend lower in the near term. Moreover, Liu’s comments could ease pressure on Chinese stocks, including Alibaba. Yao double downgraded BABA stock to a Sell from a Buy and reduced his price target to $65 from $180. The analyst stated that investors are reducing exposure to Chinese internet stocks amid macro and geopolitical risks. Recently the U.S. SEC (Securities and Exchange Commission) issued a provisional list of Chinese stocks that failed to adhere to the Holding Foreign Companies Accountable Act. Read more: Alibaba Stock Drops Below $100: What’s Next? Investors’ new-found love for Alibaba stock stems from favorable commentary from the Chinese vice-premier Liu He. Per a Reuters report, Liu called for policies that are market-friendly and add stability.
Alibaba has dropped by 40% over the last month alone, as markets are in risk-off mode and keep selling Chinese equities at almost any price. · There are several ...
The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. BABA has the potential to deliver massive returns over the coming years if tensions between China and Taiwan, and/or China and the US ease. Instead, BABA has been the victim of multiple compression in a massive way, as investors keep selling BABA at any price due to China-related macro fears. If the market's panic mode ends and investors become keener on being exposed to China's long-term growth story, BABA (and many of its Chinese tech peers) could generate huge returns. But if the China tensions ease, and if BABA continues to generate at least some growth, investors could generate very strong returns over the coming years. Considering the fact that cloud computing in China is not as developed as in the US yet, the unit should have a strong long-term growth outlook. Due to its links to Russia, there is the potential for sanctions against China as well. Alibaba likely won't turn into a no-growth company in the near term, which means that potential total returns could be way higher. The fact that Chinese companies are oftentimes inclined to partner with Chinese providers for critical solutions such as cloud computing also should help BABA's prospects in the cloud computing space. Alibaba is one of the largest e-commerce players in the world, and a dominant force among Chinese tech companies. That is, for reference, more than Amazon's Q4 operating income run rate of $14 billion -- and yet, Amazon's market capitalization of $1.5 trillion is close to 7x as high as BABA's market capitalization of $225 billion. Instead, China-related macro themes and their perception by investors from the US and elsewhere will decide how BABA will do over the coming weeks and months.
Chinese stocks enjoy strong rebound as the country promises to provide support to markets and economy. Traders are willing to bet that Alibaba stock will ...
Not surprisingly, this pullback attracted speculative traders who are willing to bet that the company’s stock was oversold. Alibaba shares are currently trading at levels that were last seen back in 2016. However, China has so far managed to navigate the challenging diplomatic environment without big problems.
PRNewswire/ -- InvestorsObserver issues critical PriceWatch Alerts for BABA, DQ, JBL, SQ, and MU. Click a link below then choose between in-depth options...
- JBL:https://www.investorsobserver.com/lp/pr-options-lp-2/?symbol=JBL&prnumber=031620224 - DQ:https://www.investorsobserver.com/lp/pr-options-lp-2/?symbol=DQ&prnumber=031620224 - BABA:https://www.investorsobserver.com/lp/pr-options-lp-2/?symbol=BABA&prnumber=031620224