Alibaba stock is trading at $110.03 as of this writing, recording a 9% decline in 24 hours, while the stock has gained 14% in a week.
By Traidingview
Shares of some other Chinese companies also rose on the easing of restrictive measures in this sector.
Positive investor sentiment is rising and hedge funds are taking their own actions in the meantime. Prior to the current price hike, BABA shares had lost about 50% of their price over the past year.
Hedge funds continue to invest in the company, increasing their holdings to 1.1 million shares last quarter, and Bridgewater Associates, a major investment management firm, raised its stake in the stock to $813.9 million. This shows the positive investor sentiment.
Earlier this week, China approved new video game licenses, a sector previously not supported by regulators. The news sent Alibaba shares up 20% since Monday, as there were expectations that an initial public offering by Alibaba-affiliated fintech giant Ant Group would receive regulatory approval.
However, expectations were not met as the China Securities Regulatory Commission said it was not working on a possible IPO of Ant. Shortly thereafter, the stock fell 6.1 %.
Despite the obstacles, many analysts are optimistic about the company’s stock, and also expect that over time a historic moment for Chinese technology companies and Ant IPO will still happen.
The company’s performance rose by 12.72% over the last 7 days and by 35.53% over the last month.
The target price of the shares was $185.
The market capitalization of the company is $295.51 billion.
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