Alibaba Dumps $317M Worth Of XPeng Stock: Cash Grab Or EV Exit Looming?
Portfolio Pulse from Anan Ashraf
Alibaba Group Holding Ltd. (NYSE:BABA) sold approximately 33 million U.S.-traded shares of XPeng Inc. (NASDAQ:XPEV), totaling $317 million. The sale price was $9.60 each, a 2.9% discount to XPeng's closing price of $9.89. This follows a previous sale in December and comes despite ongoing collaboration between the two companies in R&D and marketing. XPeng reported a Q4 sales growth of 153.9% and expects vehicle deliveries to increase by 15.2% - 23.4% year-on-year in Q1. XPeng's stock closed down 3.84% at $9.51.
March 21, 2024 | 8:48 am
News sentiment analysis
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NEGATIVE IMPACT
XPeng's stock dips following Alibaba's sale of $317M worth of shares, despite reporting strong Q4 sales growth and optimistic Q1 delivery forecasts.
The sale by Alibaba, a major investor, could be perceived negatively by the market, contributing to the stock's decline. However, XPeng's strong financial performance and growth forecasts may mitigate long-term impacts. Short-term, the stock is likely to face downward pressure.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
NEUTRAL IMPACT
Alibaba sells $317M worth of XPeng stock, marking another significant divestment from the EV manufacturer.
Alibaba's sale of XPeng stock could indicate portfolio rebalancing or a strategic shift, but ongoing collaborations suggest the relationship remains strong. The impact on Alibaba's stock is neutral short-term as the sale might be viewed as a cash realization strategy rather than a loss of confidence in XPeng.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80