What's Going On With Alibaba Stock On Monday?

Alibaba Group Holding Limited BABA, also known as China’s tech barometer, continued to trade higher on Monday as China shared its stimulus plans last week.

China’s central bank plans to cut banks’ reserve requirement ratio (RRR) by 50 basis points or half a percentage point. It also plans to lower the seven-day reverse repurchase rate to 1.5% from 1.7%.

Also Read: Alibaba Follows Amazon And Walmart, Pours $5.7B Into Holiday Sales Push

Shawn Yang of Arete Research told SCMP that he expects Alibaba, China’s leading e-commerce stock, to be the prime beneficiary of the stimulus.

As per Yang, Alibaba’s cloud services and international expansion further enhance its position. Recent reports indicated that Alibaba is collaborating with Nvidia Corp NVDA to boost the autonomous driving experience of Chinese smart vehicle companies like Li Auto Inc LI. Alibaba also partnered with XPeng Inc XPEV.

Appaloosa Management founder David Tepper ramped up exposure to China through Alibaba, JD.com Inc JD, Baidu Inc BIDU, and PDD Holdings Inc PDD, as per a CNBC interview. JD.com, Baidu, and PDD stocks are also trading up on Monday.

Last week,  Alibaba and JD.com opened their walled gardens to combat the slowdown in demand. Taobao and Tmall platforms integrated JD.com’s logistics services.

JD.com agreed to leverage Alibaba’s logistics network Cainiao Global Express and Cainiao Stations and added Alipay, Alibaba’s fintech arm, as a payment option.

Alibaba stock gained 20% in the last 5 days. Investors can gain exposure to the stock through Avantis Emerging Markets Equity ETF AVEM and Global X Artificial Intelligence & Technology ETF AIQ.

Price Action: BABA stock is up 4.16% at $111.79 premarket at the last check Monday.

Also Read:

• Apple’s Reviews Strategy, Cuts Film Budgets After Blockbuster Spend – What’s Next for Apple TV+?

Image by zhu difeng on Shutterstock