Business News

Alibaba makes a stunning comeback, surging % in a single day.

After days of selling, Alibaba (BABA) made a stunning reversal on Wednesday, closing 37 percent higher, its biggest one-day gain since 2014. In a single day, the move increased the Chinese e-commerce giant’s market capitalization by nearly $80 billion.

The rally came after Beijing pledged to keep markets stable, implying an end to regulatory crackdowns. JD.com (JD), Pinduoduo (PDD), and Baidu (BIDU) all closed with significant gains.

Alibaba’s American depository shares had been hammered in recent sessions. This week, they hit a multiyear intraday low of $73.28. BABA is still down 12 percent year to date after losing 48 percent in 2021.

Chinese regulatory risks, Beijing’s alliance with Russia, and US disclosure requirements that threaten Chinese firms’ delisting have all contributed to investors’ recent flight from Alibaba and its peers.

JPMorgan downgraded Alibaba, JD.com, Pinduoduo, and Baidu to Underperform earlier this week, calling Chinese Internet names “un-investable” for the time being.

Since last year, when China’s regulators began cracking down on giants like Alibaba and JD.com, the number of Chinese e-commerce and technology companies listed in the United States has dropped significantly.

On Wednesday, the top company on Editorials99 Finance’s Trending Ticker page was Alibaba, followed by Didi (DIDI), Nio (NIO), Pinduoduo, and Baidu.

About the author

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Kathy Lewis

Kathy Lewis is an all-around geek who loves learning new stuff every day. With a background in computer science and a passion for writing, she loves writing for almost all the sections of Editorials99.

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