Alibaba Shares Bounce Back Thursday: What's Going On?

Alibaba Group Holding Limited BABA saw a rise in its shares Thursday afternoon after experiencing a decline on Tuesday following the release of its quarterly earnings report.

Here's What's Going On: In terms of earnings, Alibaba’s quarterly performance was mixed. While revenue figures surpassed expectations of $30.4 billion by 1.08%, coming in at $30.729 billion, the company reported lower-than-expected EPS of $1.40 compared to estimates of $1.41 according to Benzinga Pro.

What’s New: Thursday’s positive movement may be partly due to an X post from Citron Research. The post expressed optimism about Alibaba’s future, highlighting its potential to emulate the successes of tech giants like Amazon and Microsoft in China.

“Alibaba ($BABA) gaining momentum should cruise past $100,” Citron Research said.

Specifically, the firm pointed to Alibaba’s AI cloud prospects and strategic investments as key factors driving its growth. The post’s positive sentiment appears to have resonated with investors, contributing to the uptick in Alibaba’s stock price Thursday.

What Else: Barclays analyst Jiong Shao maintained an Overweight rating on Alibaba on Thursday, but lowered the price target from $109 to $107. Conversely, BofA Securities analyst Eddie Leung maintained a Buy rating on the stock and raised the price target from $99 to $103.

Overall, Thursday’s movement in Alibaba’s stock likely reflects a combination of factors, including the recent earnings report, a bullish tweet from Citron Research and analyst updates. Investors should continue to monitor Alibaba’s performance closely as it navigates challenges and opportunities in the Chinese market landscape.

See Also: What’s Going On With Tilray Stock Tuesday?

BABA Price Action: Alibaba shares are currently up 6.88% at $86.56 at publication time, according to Benzinga Pro.

Photo: zhu difeng from Shutterstock