Chinese tech stocks Alibaba, Baidu, and JD.com fell due to disappointing economic data

From Nasdaq: 2024-07-15 16:35:00

Shares of Alibaba (NYSE: BABA), Baidu (NASDAQ: BIDU), and JD.com (NASDAQ: JD) fell on Monday, down 2%, 5.9%, and 5.3%, respectively, driven by disappointing Chinese economic data showing just 4.7% growth. Majority of growth concentrated in industrial production and exports, while consumer sentiment remained low, hinting at potential disappointing Q2 earnings for these companies.

The economic slow-down may signal value traps for Chinese tech stocks. Despite trading at single-digit earnings multiples, factors like lockdowns, property sector issues, and regulatory pressures on tech firms continue to weigh on consumer economy. China may introduce new measures to stimulate growth, presenting potential challenges and opportunities for investors.

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Read more at Nasdaq: Why Alibaba, Baidu, and JD.com Were Down Today