Why Alibaba Shares Are Rising

Alibaba Group Holding Ltd – ADR BABA shares are trading higher by 4.14% to $100.75 Thursday afternoon amid hopes of economic stimulus from China following President-elect Donald Trump's win.

Trump's campaign promise to raise tariffs on Chinese imports up to 60% threatens to disrupt trade and trim China's GDP by one percentage point, leading Beijing to consider significant fiscal measures to support its economy.

What To Know: With the National People's Congress meeting this week, analysts expect a stimulus package potentially exceeding 10 trillion yuan ($1.39 billion), aimed at local government debt and real estate.

For Alibaba, China's largest e-commerce and cloud company, stimulus could provide a crucial lift amid slowing consumer spending and domestic economic uncertainty.

Enhanced financial support would likely increase consumer purchasing power, directly benefiting Alibaba's core e-commerce revenue and affiliated services like Alipay.

Read Also: Why Trump’s Boost To Treasury Yields, Inflation Expectations May Weaken Fed’s Efforts To Cut Interest Rates

What Else: Alibaba's gains Thursday reflect investor optimism that economic support will stabilize China's economy and offset potential losses from rising U.S. tariffs. As consumers regain confidence and spending power, Alibaba stands to benefit across its business lines, from retail to cloud computing.

Read Also: Fed Cuts Interest Rates To Lowest Since February 2023, Sticks To Data-Driven Path

How To Buy BABA Stock

By now you're likely curious about how to participate in the market for Alibaba – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Alibaba, which is trading at $100.61 as of publishing time, $100 would buy you 0.99 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, BABA has a 52-week high of $117.82 and a 52-week low of $66.63.