Why Alibaba stock only rose by 6%

what happened

Share of Alibaba Group Holdings Limited (New York Stock Exchange: BABA) Rebounding from the historic sell-off, the Chinese e-commerce giant’s stock has fallen 30% in just two months. As of 10:55 am Eastern Time, Alibaba’s stock price has risen 6% from yesterday’s low of several months.

So

Enough to say that this is Wall Street Journal It was just reported that “regulatory risk” is expanding Alibaba’s “Christmas Eve sell-off” and described how the cancellation of the planned IPO of Alibaba’s Ant Group subsidiary and antitrust investigations in China have reduced Alibaba̵

7;s market value by 2,730 Billion dollars for a few months. To quote the analyst, Log It warned that the pressure on Alibaba and Ant Kingsoft is “intensifying”, and regulators have instructed the latter to “refocus attention on its original payment business” and stop expanding into new, more profitable business areas, such as Loan origination. .

That being said, even Log Acknowledging that investors may have overreacted to regulatory concerns and that “it is not in China’s interest to split or destroy such a profitable company”.

How to do

This may be the sentiment when mentioning Alibaba stock today.

As reported by TheFly.com today, Truist Financial (formerly BB&T) just released a note that analyzed the value of Alibaba based on the “Sum of Parts” valuation, just in case the company Yes broken. The analyst concluded that such a spin-off is “unlikely.” Even if this happens, Alibaba will still let its shareholders own parts worth at least $294. 25% is higher than the current price of Alibaba stock.

The analyst also pointed out that Alibaba is now so important to the Chinese economy that it has become a “must-have” for shoppers, so Alibaba will maintain very high profits regardless of whether it breaks up or not. Based on this reassurance, it seems that Alibaba investors have returned to buy the stock today.