Investors have three China technology stocks to watch today. Last week, Nio closed a much-needed strategic equity investment from CYVN. It received $2.2 billion from the Abu Dhabi-based investment vehicle.
Nio and CYVN will work closely to pursue strategic and technology collaborations in international markets. Investors should exercise caution. Nio’s losses increased as it sold more units in China. Regulators protecting their markets may hinder Nio’s attempt to crack international markets.
The wildly popular Chinese firm, Alibaba (BABA), lost against JD.com (JD). Reuters reported that JD won its case when the High People’s Court of Beijing said that Alibaba Zhejiang Tmall Network and Zhejiang Tmall Technology abused their market dominance.
Alibaba still traded in an uptrend recently after bottoming at around $70. It faces serious competition from both JD and PDD. However, PDD’s Temu is growing so effectively that JD and Alibaba have headwinds in the months ahead.
BABA stock may continue its rebound from lows. As it approaches resistance zones, sellers may return to take profits.
JD trades at a deep discount. At a forward P/E below 9 times, very low debt, and cash per share of $25.14, JD stock is cheap.
