Alibaba Stock Split Boosts Optimism Amid China’s Economic Recovery

Apr 10, 202

Alibaba Stock Split Boosts Optimism Amid China's Economic Recovery

Alibaba, the renowned Chinese multinational technology company, has been experiencing a bullish run lately, with investors growing increasingly optimistic about the company’s stock. The plan of Alibaba stock split and split the company into six separate units is not the only reason for this increased confidence. As China’s economy steadily recovers, Alibaba Group Holding is expected to reap the benefits as the country returns to normalcy.

Alibaba, whose core business remains in Chinese e-commerce, is highly sensitive to trends in the world’s second-largest economy. Consequently, last year’s economic slowdown, caused by stringent Covid-19 lockdowns, coincided with the company’s worst quarterly growth on record. However, the situation appears to be turning around as China reopens.

Fawne Jiang, an analyst at Benchmark, noted in a recent report that despite a slow start in January and early February due to infection disruptions, the latter half of the March quarter exceeded expectations thanks to a healthy recovery of discretionary categories. According to Jiang, apparel, sports, and outdoor goods have experienced a resurgence amid China’s reopening. In response, Benchmark has increased its projections for customer management revenue, a critical segment that represents services such as marketing sold to merchants on Alibaba’s platform.

On the other hand, Jiang highlighted that online grocery sales had faced near-term challenges as consumers returned to in-person food shopping following the easing of lockdown restrictions. Nonetheless, Benchmark maintained a Buy rating and a $180 price target on Alibaba, whose stock opened just under $99 on Tuesday. The reopening trends among Chinese consumers are an important reason to be bullish on the stock, which will likely keep moving as quarterly e-commerce sales remain the company’s largest division by far.

In addition to the positive economic indicators, Alibaba’s stock has surged approximately 15% higher since the announcement of the Alibaba stock split, which opens the door for individual business units to go public independently. Numerous analysts, including those at Benchmark, have viewed this major shake-up positively.

Jiang believes the split will help investors recognize “the hidden value of multiple growth assets.” Furthermore, the restructuring should grant each business unit the much-needed autonomy to stimulate entrepreneurship, quickly and effectively respond to fast-changing market dynamics, and better fend off competition with its Alibaba stock split.

Subscribe Our Newsletter

Expert Opinion: Apple May Have 40 Million Subscribers for Streaming TV Service, Analyst Says
Expert Opinion: Apple May Have 40 Million Subscribers for Streaming TV Service, Analyst Says

Sacconaghi claimed that Apple (AAPL) had between 20 million and 40 million paying users, with yearly revenue ranging between $1 billion and $2 billion. That's not much for a firm with about $400 billion in annual revenue, but he believes the service is vital for strategic reasons.

Companies
Alibaba Is Having Its Best Day In 4 Years
Alibaba Is Having Its Best Day In 4 Years. Why Investors May Still Want to Be Wary

Chinese technology stocks rose on Thursday, while the United States and China agreed to arrange a virtual meeting between their two presidents before the end of the year.

Banks and Finance
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Hazem

5 Reasons Traders Are Switching to Perpetual Futures
Financial markets are changing all the time, and what’s hot today can be totally unlike what dominated recently or a month prior. So always stay one step ahead of news and updates in your industry, and perpetual futures are the key nowadays! These instruments are perpetual agreements, unlike traditional futures contracts and forwards, which are […]

discover
How Are NFTs Taxed in the US and Globally?

Constantine

How Are NFTs Taxed in the US and Globally?

Cyberspace is currently causing the emergence of various types of technologies. Many countries are already actively working on national programs to develop the digital economy, which will contain the main steps for its implementation, and create roadmaps in the field of robotics and sensors, neurotechnologies and artificial intelligence, wireless communication networks, quantum technologies, and distributed registry systems.

NFT
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiriesb2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Hazem

    MetaTrader vs cTrader: Which Trading Platform Shall You Choose?

    MetaTrader vs cTrader: The Full Breakdown

    Сonstantine

    Will Dogecoin Reach $1? Tokenomics and Price Analysis

    Will Dogecoin Reach 1 Dollar Analysis

    Сonstantine

    How to Get a Crypto Exchange License?

    How to Get Crypto Exchange License

    Сonstantine

    Best Crypto to Buy Now: Guide for Investors

    Best Crypto To Buy Now

    Hazem

    Grok vs ChatGPT: What’s the Best AI Assistant You Need in 2025

    Grok vs ChatGPT

    Сonstantine

    How to Choose the Right Liquidity Provider for Your Brokerage

    How to Choose the Right Liquidity Provider for Your Brokerage

    Сonstantine

    Low-Latency Trading Defined: Speed, Strategy and Technology

    Low-Latency Trading Explained

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.