Why Alibaba shares appeared at 6%

what happened

stocks Alibaba Group Holdings Limited (New York Stock Exchange: Alibaba) Today it recovered from a historic sell-off in the Chinese e-commerce giant shares You lose 30% of its value In just two months. As of 10:55 AM EST, Alibaba shares are up 6% from a multi-month low yesterday.

So what

Suffice it to say this is a strange twist on a day The Wall Street Journal The just-reported “regulatory risk” of extending the “Christmas Eve sale” in Alibaba was reported, and described how the cancellation of the planned IPO of Alibaba’s Ant Group company and the antitrust investigation in China cost Alibaba its value $ 273 billion of market value in two months. Quoting analysts, magazine He warned that pressure was “mounting” on both Alibaba and Ant, and that regulators had directed the latter to “refocus their attention on the original payments business” and stop expanding into – And more profitable Business areas such as establishing a loan.

However, even magazine He admits that investors may overreact to regulatory concerns, and that “it is not in China’s interest to dismantle or destroy such a profitable institution.”

What now

And this may be the sentiment driving Alibaba shares today.

Such as TheFly.com Today’s reports, Truist Financial (former BB&T) just came out with a note analyzing the value of Alibaba which might be based on a ‘sum of parts’ rating, in case is being We broke up. The analyst concluded that such a breakup was “unlikely” and that even if it did, the Alibaba breakup would still leave its shareholders in possession of parts valued at at least $ 294 total – and thus 25% more of what Alibaba shares are currently selling.

Moreover, the analyst noted that Alibaba is so important to the Chinese economy now that it has become a “necessity” for shoppers and thus will remain very profitable whether or not it is broken. It appears that it depends on this reassurance that Alibaba investors have returned Buy stocks today.