Alibaba Group Holding Ltd.\u2019s biggest selloff in three months is underscoring investor concern that China\u2019s consumer recovery may fail to meet lofty expectations.<\/p>\n
The ecommerce giant\u2019s 9.1% slump this week has wiped out $28 billion in the tech giant\u2019s market value. The losses have trimmed the month\u2019s gain to about 25%, though that\u2019s still more than double the rebound for the benchmark Hang Seng Index in Hong Kong.<\/p>\n
Some market participants are fretting about whether Alibaba\u2019s earnings can recover at the pace that\u2019s been priced in. That may undermine the gains, which were fueled by bullish reports from brokers including Citigroup Inc. and Goldman Sachs Group Inc. earlier this month citing further earnings upside for China\u2019s internet sector given the reopening and easing regulatory clampdown.<\/p>\n
\u201cSome investors are getting cautious after such a sharp rally, and they are waiting for data on a fundamental recovery, including earnings and business guidance,\u201d said Banny Lam, head of research at Ceb International Inv Corp Ltd. \u201cThe stock will remain volatile in the near term.\u201d<\/p>\n
Hangzhou-based Alibaba\u2019s gains in January were more than almost any other company in the Hang Seng as it extended its rally from an October low to 75%. It hasn\u2019t been alone in riding on the bullish wave, with Tencent Holdings Ltd. and NetEase Inc. also showing indications of being overbought.<\/p>\n
Alibaba\u2019s 12-month forward earnings forecast has been revised down about 4% since mid-December, data compiled by Bloomberg show.<\/p>\n
The stock\u2019s put-to-call ratio has been rebounding in Hong Kong this month, a sign that investors are buying more protection against any stock declines. Alibaba shares have been technically overbought for about three weeks before Monday\u2019s slide, Bloomberg data based on 14-day RSI show.<\/p>\n","protected":false},"excerpt":{"rendered":"
Alibaba Group Holding Ltd.\u2019s biggest selloff in three months is underscoring investor concern that China\u2019s consumer recovery may fail to meet lofty expectations. The ecommerce giant\u2019s 9.1% slump this week has wiped out $28 billion in the tech giant\u2019s market value. The losses have trimmed the month\u2019s gain to about 25%, though that\u2019s still more than double the rebound for the benchmark Hang Seng Index in Hong Kong. Some market participants are fretting about whether Alibaba\u2019s earnings can recover at the pace that\u2019s been priced in. That may undermine the gains, which were fueled by bullish reports from brokers including […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-799911","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/799911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=799911"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/799911\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=799911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=799911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=799911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}