China stocks are in a world of red of losses. Since the U.S. imposed tariffs on Chinese imports, markets sold-off Alibaba (NYSE:BABA), as well as JD.COM (NASDAQ:JD), Baidu (NASDAQ:BIDU), and even Tencent. And since Tencent’s strong quarterly earnings report hardly gave the stock much of a lift, investors are clearly waiting.
The U.S. and China trade talk, set for November 30, will make all the difference in where Chinese stocks end up next. BABA is the bell-weather of investing in China. Its revenue numbers from Single’s Day beat past numbers. In its Q2/2019 period, mobile MAU reached 666 million. Active consumers on its retail marketplace topped 601 million, up 25% from last year.
Alibaba improved the user interface on its Taobao app to tailer the user’s shopping behavior. A new user gets more coupons shown on the app, while the experienced user is pitched "everyday-low-price" items. The advanced user gets a favorite shopping channels set of buttons. These subtle but important design decisions will drive new demand and shopping activity.
Ultimately, Alibaba’s stock will not break out beyond its moving averages in the $150 - $180 range until after trade talks conclude. If tariffs are cut back, Alibaba stock could soar.
