After Nvidia and Apple, Alibaba Chases Vietnam: New Data Center to Boost Control and Meet Local Laws
Portfolio Pulse from Anusuya Lahiri
Alibaba Group Holding Limited (NYSE:BABA) is planning to build a data center in Vietnam to comply with local data storage laws and support demand in the fast-growing economy. This move follows Vietnam's 2022 law requiring local data storage, which has been resisted by major tech firms like Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) and Amazon.Com Inc (NASDAQ:AMZN). The decision is part of Alibaba's strategy for better data security and control, and cost reduction. Other companies, including Nvidia Corp (NASDAQ:NVDA), Apple Inc (NASDAQ:AAPL), and Lam Research Corp (NASDAQ:LRCX), are also turning to Vietnam for supply chain diversification. Alibaba's stock can be accessed through Invesco Golden Dragon China ETF (NASDAQ:PGJ) and Tidal Trust II CoreValues Alpha Greater China Growth ETF (NYSE:CGRO). BABA shares recently saw a 1.28% increase to $75.78.
May 01, 2024 | 3:21 pm
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POSITIVE IMPACT
Alibaba plans a new data center in Vietnam for legal compliance and demand growth, shares up 1.28%.
Building a data center in Vietnam is a strategic move for Alibaba to comply with local laws and cater to market demand, likely boosting investor confidence and stock value in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Alibaba's Vietnam expansion offers investment opportunity through Tidal Trust II CoreValues Alpha Greater China Growth ETF.
CGRO, by holding Alibaba shares, may see a positive impact from Alibaba's operational expansion in Vietnam, reflecting in its ETF performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Investors can gain exposure to Alibaba through Invesco Golden Dragon China ETF.
As PGJ includes Alibaba in its holdings, Alibaba's strategic expansion in Vietnam and subsequent stock price increase could positively impact PGJ's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70