From Nasdaq:

Alibaba investors have undergone a challenging few years due to Beijing’s crackdown on the tech sector, resulting in a significant fine and divestments to address fears of tech monopolies. After Chinese economic data indicated weakening, Alibaba shares dropped 3.5%, reflecting the broad decline in the stock market.

China’s economy cooled as the Purchasing Managers’ Index (PMI) reported a decline in factory activity to 49, the lowest in six months. President Xi Jinping acknowledged the struggles faced by businesses and individuals, underscoring China’s difficulty in recovering from the pandemic.

Alibaba’s revenue increased by 9% to $30.8 billion in its September quarter, showing signs of improvement. However, the company disappointed investors by deciding not to spin off its cloud unit due to U.S. chip exporting regulations. Despite resilience in the weak Chinese economy, Alibaba may benefit from an economic recovery.

Analysts recommend considering other stocks as Alibaba wasn’t selected among the 10 best stocks to buy now. The Stock Advisor service has seen returns that triple the S&P 500, providing guidance for building a portfolio and regular updates from analysts. *Stock Advisor returns as of December 18, 2023.

The views expressed are of the author and do not reflect those of Nasdaq, Inc.



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