Cedears Alert: Chinese company listed on Wall Street rises sharply after end of antitrust investigation

Cedears Alert: Chinese company listed on Wall Street rises sharply after end of antitrust investigation

August 30, 2024 – 10:28

Recent reports indicate that China is trying to stimulate economic growth through various initiatives. This could boost the shares of Chinese companies listed on the New York Stock Exchange.

Stocks don’t move in a straight line. The average stock market return is about 10% per year.

Reuters

The actions of Alibaba Group Holding Limited (NYSE) are up sharply this Friday in the premarket, after receiving a full authorization from the national regulator after more than three years of scrutiny since late 2020 for behaving like a monopoly. This is key for the Cedears, as the Chinese company is listed on the local market via the ticker $BABA.

“From the inspection and evaluation, Alibaba Group has completely stopped the monopolistic behavior of ‘choosing one among two’,” the SCMP quoted the regulator as saying. The Chinese regulator fined Alibaba $2.8 billion in 2021, equivalent to 4% of the e-commerce giant’s revenue in 2019.The ambitious initial public offering of Alibaba’s fintech subsidiary Ant Group also fell under regulatory scrutiny.

Alibaba Group shares have lost more than 13% over the past 12 months as they faced intense competition in domestic e-commerce in a weak economy, while reeling from a regulatory crackdown by the Chinese government, along with U.S. sanctions on semiconductors, which put its artificial intelligence ambitions at risk.

Recent reports indicate that China is trying to stimulate economic growth through several initiatives, including allocating 43.5 billion yuan ($6.12 billion) to build computing data centers and provide support to technology startups and the domestic electric vehicle industry.

Will BABA shares rise further?

When trying to assess whether Alibaba will rise from current levels, it is a good idea to look at analyst forecasts.

Wall Street analysts have an average 12-month target price of $106.45 for Alibaba. The highest target is $130.0 and the lowest is $85. Of all the analysts covering Alibaba, 9 have positive ratings, 2 have neutral ratings, and none have negative ratings.

social networks alibaba.jpg

When trying to assess whether Alibaba will rise from current levels, it is a good idea to look at analyst forecasts.

When trying to assess whether Alibaba will rise from current levels, it is a good idea to look at analyst forecasts.

Alibaba Social Media

Over the past month, 9 analysts have adjusted their price targets. Here’s a look at recent price target changes [Calificaciones de Analistas]Benzinga also tracks the most accurate analysts on Wall Street. Check out how the analysts covering Alibaba have performed in recent history.

Stocks don’t move in a straight line. The average stock market return is about 10% per year. Alibaba is up 8.37% so far this year. The average analyst price target suggests the stock could have further room to rise.

Source: Ambito

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