Alibaba and Baidu are demonstrating their confidence in the Chinese autonomous driving market by investing in Horizon Robotics’ upcoming IPO. The company, specializing in advanced driver-assistance systems, aims to raise nearly $700 million on the Hong Kong Stock Exchange. Alibaba, Baidu, and Beijing Financial Holdings are committing to purchasing over 30% of Horizon Robotics’ shares, ensuring strong institutional and retail investor interest.
Alibaba’s international division has launched an upgraded AI translation tool, Marco MT, claiming it surpasses competitors like Google, DeepL, and ChatGPT. This move highlights Alibaba’s commitment to AI advancements and aims to boost its international business growth.
Alibaba’s international e-commerce arm, Lazada, is aggressively courting European luxury brands to boost its presence in Southeast Asia, aiming to capture a $100 billion e-commerce market by 2030. Lazada’s recent success, including becoming EBITDA positive, is fueled by investments in AI and online marketing. While Alibaba’s international retail business thrives, its domestic market faces challenges due to price wars and geopolitical tensions. Despite these hurdles, Wall Street analysts remain optimistic about Alibaba’s future, with an average 12-month price target of $107.27.
Alibaba shares fell by 7% this week as investors reacted to the lack of major economic stimulus measures in China after the reopening of the market following a weeklong public holiday. While concerns about China’s economic recovery initially weighed heavily on the stock, the People’s Bank of China’s (PBoC) intervention with a new liquidity boost measure has somewhat stabilized the market.
Alibaba Group Holding Ltd. (BABA) shares took a hit on Tuesday, mirroring the broader decline in U.S.-listed Chinese stocks. This drop followed China’s National Development and Reform Commission’s (NDRC) announcement of underwhelming stimulus measures, which failed to meet investor expectations for bold economic boosts.
U.S. stock futures rose on Tuesday morning, but Chinese tech stocks took a dive after the government’s stimulus announcement fell short of expectations. Alibaba shares dropped sharply, leading a wave of losses in major tech companies.
Major U.S. stock indices closed in the red on Monday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq all experiencing declines. Alibaba, Nvidia, and Riot Platforms saw notable price movements, while Celsius Holdings and Tesla faced downward pressure.
Alibaba and other Chinese tech giants are experiencing a surge in stock prices fueled by anticipated stimulus measures from the Chinese government. The country is taking steps to boost domestic spending and support its struggling economy, benefiting e-commerce giants like Alibaba, JD.com, and Baidu. The upcoming Singles’ Day shopping festival is also expected to drive further growth in the sector.
The stock market experienced a turbulent day, driven by geopolitical tensions, Hurricane Helene’s aftermath, and ongoing port strikes. The S&P 500 and Nasdaq closed lower, while Tesla, Amazon, Nike, Walmart, and Alibaba saw notable price movements.
Alibaba’s Sun Art Retail Group trading suspension has fueled speculation about a potential divestment of its stake in the hypermarket operator. The move comes after Alibaba purchased a controlling stake in Sun Art in 2020. Private equity firms are reportedly interested in acquiring Sun Art, while Alibaba might benefit from China’s stimulus plans. Despite recent challenges, Alibaba’s fiscal first-quarter 2024 results show growth in international commerce, suggesting a strategic shift towards global expansion.
