What's Going On With Alibaba Stock Tuesday?

Alibaba Group Holding Limited BABA stock traded lower Tuesday as China showed no urgency in reflating the economy with growth lagging market expectations. 

Also, some Wall Street banks reduced their targets again, SCMP reports.

China's GDP grew at an annual pace of 6.3% last quarter, trailing the consensus forecast of a 7.1% gain. 

Also Read: Alibaba Stock Gets A Hit As China's Q2 GDP Misses Estimates

Analysts said Beijing's weak consumer confidence, a struggling housing market, and record youth unemployment threatened its 2023 annual GDP growth target of ~5%.

Nomura analysts do not expect the GDP data to prompt Beijing to step up stimulus measures. The analysts said that growth will ease further in the second half, and Beijing's supportive efforts will be inadequate to turn the economy around.

According to Bloomberg data, Morgan Stanley, JPMorgan Chase, and Citigroup trimmed their growth forecasts for China's GDP this year to 5%.

Weak consumer spending threatens to drag the economy into a deflationary trap, with prices stalling in June while a decline in factory prices deepened. The government said that June home sales fell 18% in volume and 19% in value.

Investors regard Alibaba as the Chinese tech barometer. The company sprung into action via generative artificial intelligence and organizational restructuring endeavors to unlock more shareholder value.

Price Action: BABA shares traded lower by 1.62% at $91.90 premarket on the last check Tuesday.

Photo by  Rico Shen via Wikimedia Commons