Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

What's Going On With Alibaba Stock On Thursday?

Published 23/05/2024, 12:32
© Reuters.  What\'s Going On With Alibaba Stock On Thursday?
FXI
-
BABA
-

Benzinga - by Anusuya Lahiri, Benzinga Editor.

Alibaba Group Holding Ltd (NYSE:BABA) is eyeing a convertible bond sale to raise close to $5 billion, taking a cue from rival JD.Com, Inc’s (NASDAQ: JD) move this week. Both stocks are trading lower on Thursday.

Alibaba discussed bond sales with investment banks. These bonds can be converted into US-listed stock to fund share repurchases and growth.

An offering could come by this week, Bloomberg cites familiar sources.

Also Read: Alibaba Rival PDD’s Explosive Growth Continues, Revenue More Than Doubles

Alibaba seeks funds to invest in its commerce and cloud businesses, both of which lost market share during the domestic regulatory crackdown. The company remains engaged in a price war with its contemporaries by slashing the prices of its cloud and artificial intelligence services while aggressively pursuing its AI ambitions.

In 2024, Alibaba ratified a share buyback expansion program.

Alibaba’s American depositary receipts shed 6.6% in the first three days of this week, pruning their year-to-date gain to 6.7%.

Meanwhile, reports indicated bearish sentiments of U.S. short sellers led to a selloff in Chinese stocks this week. Bearish bets on iShares China Large-Cap ETF hit a peak, pointing at a shift to non-China emerging markets.

Alibaba reported fiscal fourth-quarter 2023 revenue growth of 7% year-on-year to $30.73 billion, beating the analyst consensus of $30.40 billion. Adjusted earnings per ADS of $1.40 missed the analyst consensus of $1.41.

BABA stock has lost 0.24% in the last 12 months. Investors can gain exposure to the stock via Tidal Trust II CoreValues Alpha Greater China Growth ETF (NYSE:CGRO) and ProShares Long Online/Short Stores ETF (NYSE:CLIX).

Price Action: BABA shares were trading lower by 1.72% at $81.26 in the premarket at the last check on Thursday.

Alibaba Photo Via Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.