Alibaba: The Steep Sell-Off Doesn't Make Much Sense
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Alibaba's stock has seen a significant decline after peaking in October 2024, despite improvements in monetization and profitability in its cloud segment. The initial boost from China's stimulus has faded, raising questions about the extent of the sell-off.

November 21, 2024 | 4:45 pm
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Alibaba's stock has experienced a steep decline after reaching a peak in October 2024. Despite this, the company has shown improved monetization and profitability in its cloud segment. The initial positive impact from China's stimulus measures has waned.
The article highlights a significant drop in Alibaba's stock price, which may seem excessive given the company's improved monetization and profitable cloud segment. The fading impact of China's stimulus measures could have contributed to the sell-off. However, the improvements in Alibaba's business suggest that the market reaction might be overdone, leading to a neutral short-term impact as investors reassess the situation.
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