What's Going On With Alibaba Stock Wednesday

Alibaba Group Holding Limited BABA shares are trading higher Wednesday due to upbeat results posted by the Chinese tech companies this week despite investor concerns.

Baidu, Inc (NASDAQ: BIDU) reported a first-quarter FY23 revenue growth of 10% year-on-year to $4.535 billion Tuesday, beating the consensus of $4.310 billion. Baidu's Core revenue increased 8% Y/Y to $3.35 billion

Revenue from IQIYI, Inc IQ increased 15% Y/Y to $1.22 billion Tuesday, beating the consensus of $1.15 billion.

Also, Tencent Music Entertainment Group TME reported first-quarter revenue growth of 5.4% year-over-year to $1.02 billion Tuesday, beating the consensus of $985.62 million.

Online music service revenues grew by 33.8% Y/Y to $510 million. Revenues from social entertainment services and others decreased by 13% Y/Y to $510 million.

On Wednesday, Tencent reported an 11% topline growth to 149.98 billion yuan ($21.70 billion) for the three months ended March 31, topping the 146.09 billion yuan consensus. 

Net profit rose 11% to 25.83 billion yuan, missing the 29.67 billion yuan consensus, Reuters reports. Domestic gaming revenue gained 6% to 35.1 billion yuan, while international gaming revenue rose 25% to 13.2 billion yuan.

According to analysts, Chinese tech barometer Alibaba Group Holding Limited BABA will likely report revenue that grew less than 3% Thursday as China's post-Covid recovery is losing steam, reducing the expectancies of a boost in Chinese tech shares from earnings. Analysts expected Tencent's sales to lag the double-digit pace of the past still.

However, analysts also believe BABA's transformation into a holding company should increase transparency and accountability, boost competitiveness and unlock shareholder value. Wide application of Alibaba's generative AI model should drive operational improvements and growth. 

Also, this week, Dan Loeb's Third Point ramped up its stake in Alibaba.

Price Action: BABA shares traded higher by 2.16% at $90.67 on the last check Wednesday.

Photo by  Rico Shen via Wikimedia