Alibaba Bullish Pumping Losing Momentum: Now What?

On Friday, June 17, reports leaked that the Chinese Communist Party (CCP) would approve Alibaba’s
(BABA) Ant Financial initial public offering. Within hours after the market opened, the Chinese
government denied those rumors.

Just two weeks prior, the media reported the same rumor.

This is a classic pump piece that cautious investors should ignore. Alibaba has more headwinds than
other Chinese firms. The CCP will never forget about found Jack Ma said. Ma criticized the government
for hurting innovation. He wanted to encourage the government to embrace fintech and e-commerce.

Shortly after Jack Ma’s comments, the government forbid Alibaba from listing its Ant Financial IPO.

More recently, BABA stock traded in a tight range of between $100 - $120 in the first quarter. The
trading range fell to $82 - $100 in the last three months. The selling momentum could intensify from
here. Alibaba’s revenues are slowing every quarter. Its competitors, which include JD.com (JD) and
startup e-commerce firms, are taking Alibaba’s market share.

China is not fully re-open, either. The government announced a re-opening, only to avoid criticism of its
harsh lockdown strategies. For example, suicide and suffering are higher than Covid-related mortality.

Stop trading BABA’s range for now. Investors have better China-based firms to consider.