Chinese internet companies such as Tencent Holdings (OTCPK:TCEHY) and Alibaba (NYSE:BABA) opened the week with modest gains on Monday as unrest and demonstrations against China’s “zero-Covid” campaign expanded around the nation. Alibaba stock was up on Monday.
Large demonstrations against China’s continued Covid tactics, which have included massive quarantines and sudden lockdowns across the nation, have been reported in cities including Beijing and Shanghai. Beijing has occasionally created “closed-looped” environments around some of the enormous, city-sized factories that produce many well-known consumer electronics products. These regulations have included keeping employees confined to the dorms provided by the firm and prohibiting entry and exit from the buildings.
After the U.S. Thanksgiving holiday weekend, when the stock markets in that country were closed on Thursday and only partially open on Friday, investors were welcomed with cautiously upbeat results from many of the top Chinese tech stocks.
Tencent (OTCPK:TCEHY) increased by 2.5%, while Alibaba (BABA) gained more than 2%. Shares of Baidu (NASDAQ:BIDU), Weibo (NASDAQ:WB), NetEase (NASDAQ:NTES), and JD.com (NASDAQ:JD) all increased by more than 3%. Nearly 5% was added to the KraneShares CSI China Internet ETF (KWEB).
Alibaba Stock Outlook
The e-commerce platform developer Pinduoduo (NASDAQ:PDD) disclosed better-than-expected third-quarter earnings before the opening of trade, which caused the company’s shares to increase by more than 15%. As a result of Wedbush analyst Dan Ives’ assertion that Apple (NASDAQ:AAPL) and numerous chip suppliers were caught in the “crossfire” of China’s divisive Covid laws, Apple (NASDAQ:AAPL) shares dropped by about 2%.
Investors should continue to hold onto their Alibaba shares for a number of reasons.
Since losing more than 70% of its market value over the past two years, holding Alibaba’s (BABA 0.85%) stock has been difficult.
Investors questioned if Alibaba had peaked and would continue to drop as the stock price declined. Nevertheless, I made the decision to keep the stock as the company worked to resolve its problems.
The latest Alibaba stock performance wasn’t all that horrible. When Alibaba announced one of its worst-ever results in the first quarter of the fiscal year 2023, which concluded on June 30, it wasn’t nice. While revenue stayed the same, net income dropped by 53%.
Investors anticipated a similarly difficult second quarter as the IT company dealt with issues including COVID-19 lockdowns in China and a deteriorating global climate. But when Alibaba revealed its results, I was a little taken aback by its tenacious performance.
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