Why Alibaba Stock Crushed the Market Today
A new top-down economic stimulus program from the Chinese government was stimulating interest in the country's stocks on Friday. One of the nation's big corporate champions, e-commerce giant (NYSE: BABA), benefited handsomely from this. The shares closed the day almost 3% higher, comparing very favorably to the basically flat performance of the bellwether S 500 index.
The government's initiative didn't specifically cover the tech sector Alibaba is a part of, but it did provide some modest optimism for the Chinese economy as a whole. The People's Bank of China will provide the nation's lenders with 800 billion yuan ($113 billion) worth of one-year loans in an attempt to boost the economy. Authorities also eased a clutch of regulations aimed at helping the troubled domestic real estate market.
Judging by the modest pop in Alibaba's price (and that for other Chinese tech titles), it seems investors are cautiously optimistic that these reforms will benefit the economy. And a rising Chinese tide lifts all boats in that sea, they're hoping.
Source Fool.com
Alibaba Group Holding Ltd ADR Stock
The stock is one of the favorites of our community with 41 Buy predictions and 2 Sell predictions.
With a target price of 109 € there is a positive potential of 49.73% for Alibaba Group Holding Ltd ADR compared to the current price of 72.8 €.
