Ahead of posting quarterly results, Alibaba (BABA) incited strong buying interest when it company said it planned to split itself. This maximizes shareholder value. The CCP is less likely to continue punitive regulations against the e-commerce and cloud giant.
After posting Q4 results, BABA stock plunged from over $90 to ~ $84.00. The firm reported $30.32 billion in revenue, up by 2.0% Y/Y. Non-GAAP EPADS was $1.56. CEO Daniel Zhang said the full spin-off of the Cloud Intelligence Grouop via a stock dividend would unlock value.
Alibaba is cheap for a reason. People lost work and income during the three-year Covid lockdown. After over six months, the Chinese people have mountains of debt from real estate and weak job prospects.
JD.com (JD) posted a modest +1.4% Y/Y in revenue growth. However, the CEO will resign the post for personal reasons. Still, JD will cater to its loyal user base to grow.
JD fell from a $38 weekly peak to $35.06.
Baidu (BIDU) is the strongest among the three. Its revenue is +1.3% Y/Y, led by Baidu Core up by 8%.
Sentiment continues to build in negative momentum. Wait for the selling pressure to end. Take only small positions on the dip. The downtrend could take days or weeks, so investors should not commit to this region.
Tech Insider
