Petru Dinca
Petru Dinca
Italy
5y
The company’s shares rebounded partially this month, after a small publishing company chaired by Warren Buffett’s longtime partner Charlie Munger disclosed that it increased its stake in Alibaba. They jumped again after Jack Ma, Alibaba’s billionaire co-founder and the controlling shareholder of Ant, made a trip to Europe, indicating he was free to travel overseas and might no longer be under intense regulatory scrutiny at home. Mr. Ma’s appearance in Europe “could inject a boost of confidence” for investors, said Oong Chun Sung, an analyst at UOB Kay Hian, a Singapore-based brokerage. The failed listing of Ant, which is a third owned by Alibaba and is restructuring into a financial-holding company, had a “very long-lasting impact on investor sentiment,” he said. After its New York-listed American depositary receipts gained 15% this month, Alibaba’s market capitalization stands at about $460 billion. Investors were also encouraged by recent new product launches, including an advanced self-developed chip, from the company’s large and growing cloud-computing division. It provides data storage and processing technologies—as well as infrastructure for businesses—and is a significant driver of China’s digital economy. That could help counter expectations of slowing growth at Alibaba’s core e-commerce business, which has been targeted by various regulatory actions over the past year.
Not investment advice. The author may have financial interests in the mentioned instruments.
null
.