What's Going On With Alibaba Stock On Thursday?
Portfolio Pulse from Anusuya Lahiri
Alibaba Group Holding Ltd (NYSE:BABA) is planning a convertible bond sale to raise nearly $5 billion, following JD.Com, Inc's (NASDAQ: JD) recent move. Both stocks are trading lower on Thursday. Alibaba aims to use the funds for share repurchases and growth, particularly in its commerce and cloud businesses. The company is also engaged in a price war and has expanded its share buyback program for 2024. Bearish sentiments from U.S. short sellers have led to a selloff in Chinese stocks, affecting ETFs like iShares China Large-Cap ETF. Alibaba's fiscal Q4 2023 revenue grew 7% YoY to $30.73 billion, beating analyst expectations, but its adjusted earnings per ADS missed the consensus. BABA shares were down 1.72% in premarket trading on Thursday.
May 23, 2024 | 11:32 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Alibaba is planning a $5 billion convertible bond sale to fund share repurchases and growth in its commerce and cloud businesses. The stock is trading lower due to bearish sentiments from U.S. short sellers.
The convertible bond sale indicates Alibaba's need for capital to fund growth and share repurchases, which could be seen as a positive long-term move. However, the immediate market reaction is negative, influenced by bearish sentiments from U.S. short sellers.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Investors can gain exposure to Alibaba through the Tidal Trust II CoreValues Alpha Greater China Growth ETF (CGRO). The ETF may be impacted by Alibaba's stock performance.
CGRO holds Alibaba shares, so its performance is indirectly affected by Alibaba's stock movements. The current negative sentiment around Alibaba could impact CGRO.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30
NEGATIVE IMPACT
ProShares Long Online/Short Stores ETF (CLIX) offers exposure to Alibaba. The ETF's performance may be influenced by Alibaba's stock movements.
CLIX includes Alibaba in its portfolio, so its performance is tied to Alibaba's stock. The current negative sentiment around Alibaba could impact CLIX.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30
NEGATIVE IMPACT
JD.Com's recent convertible bond sale has influenced Alibaba's decision to pursue a similar strategy. Both stocks are trading lower.
JD.Com's recent bond sale has set a precedent that Alibaba is following. The market reaction to both companies' bond sales is currently negative.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50