On Friday, Chinese Internet and technology companies appeared to be on the verge of ending the week on a positive note, with advances coming from sector bellwethers such as Alibaba (NYSE:BABA) and JD.com (NASDAQ:JD).
Shares of Alibaba (NYSE:BABA) soared nearly 3%, while those of JD.com (JD) increased 2%, Baidu (BIDU) jumped 2.5%, NetEase (NTES) rose 3%, and Tencent Holdings (OTCPK:TCEHY) inched up by 1.4%.
Pinduoduo (PDD) continued to add to the gains it has accumulated due to its recent optimistic earnings report, and it was up by 2.6% in early trade. The share price of Weibo (WB) increased by approximately 2%, while the share price of Bilibili (BILI) fell by 1% and added to its significant losses from Thursday. These losses were the result of the online entertainment firm reporting dismal quarterly results and forecasts.
A nearly three percent increase was seen in the KraneShares CSI China Internet ETF (KWEB).
According to a report that was published by the Financial Times on Friday, Republican lawmakers had reportedly issued a warning to Apple (NASDAQ:AAPL), stating that the company could be subject to an investigation if it uses memory chips for the iPhone that are manufactured by the Chinese semiconductor company Yangtze Memory Technologies.
The market has come to some kind of agreement on the valuation of Alibaba (NYSE:BABA) over the past five days; its value is somewhere between $90.78 and $100.88/share at this point.
Over the past week, Alibaba (NYSE:BABA) has been consistently traded at significant volumes towards both value extremes, which has sometimes happened on the same day.
Due to the stock’s high level of volatility, Alibaba (NYSE:BABA) is an excellent choice for day trading and swing trading in the near term.
It is common practice to refer funds invested in losing situations as “dead money.” However, suitable short-term trading around a losing position can reduce the cost basis of a position and create a return on investment if the trade is carried out correctly.
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