August 8, 2022

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Alibaba Stock Jumps On Xpeng EV News, But Is BABA Stock A Buy Now?

2 min read

Alibaba (BABA) rallied sharply Thursday on news it’s teaming up with Tesla rival Xpeng (XPEV) on technology for driverless cars. But is BABA stock a buy right now?


Alibaba and Xpeng are opening a computing center that will use Alibaba’s cloud division to work on software for driverless cars. Alibaba was an investor in Xpeng before Tuesday’s news.

Headline flow has been busy around Chinese stocks lately. Chinese stocks rallied on July 7 on a Bloomberg report that China is considering letting local governments sell up to $220 billion in bonds for infrastructure spending.

Alibaba stock jumped on June 17 but pared early gains after Reuters reported that China’s central bank accepted Ant Group’s application to set up a financial holding company. But BABA stock tanked 11% on July 29 after Alibaba was added to the SEC’s list of Chinese firms facing delisting on U.S. exchanges because of Beijing’s refusal to let U.S. officials review

In early November 2020, Chinese authorities suspended the $34.5 billion Ant Group IPO in Shanghai and Hong Kong. Ant Group is the fintech arm of Alibaba. The decision to suspend the IPO came after Shanghai exchange officials said the exchange would halt the listing due to the company’s inability to fulfill conditions amid changes in the regulatory environment.

Sentiment was also positive around Alibaba stock and other Chinese stocks like (JD) and Pinduoduo (PDD) in late April. That’s when Bloomberg reported that Beijing is in talks with the U.S. to allow regulators to conduct on-site audits of U.S.-listed Chinese firms.

Alibaba Stock: Recent Earnings

Alibaba stock gapped up in late May after the company reported adjusted profit of $1.25 a share, down 20% from the year-ago quarter but above the consensus estimate for $1.07. Revenue increased 13% to $32.2 billion, helped by strength in its domestic e-commerce business.

In a sign of confidence about its business, Alibaba announced it would increase its buyback program to $25…

2022-08-02 12:00:52

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