Alibaba Stock Hits Record
Recent rally cements company’s position as one of the world’s most valuable technology companies
By Chong Koh Ping, The Wall Street Journal
Oct. 9, 2020
Alibaba Group Holding Ltd.’s stock has hit a record high, as investor confidence builds that the coronavirus pandemic has accelerated China’s rapid embrace of online commerce, and as its financial affiliate Ant Group Inc. prepares to go public.
The recent rally has lifted Alibaba’s market value above $800 billion, cementing its position as one of the world’s most valuable technology companies and opening a gap between it and Tencent Holdings Ltd., China’s other dominant tech group.
Its New York-traded American depositary receipts closed Thursday at a record $300.54. Those shares have jumped 42% this year, according to FactSet.
DBS Bank analyst Tam Tsz Wang said Alibaba’s shares were sluggish earlier this year when movement in much of China was severely restricted, and as it struggled to fulfill a surge in demand for goods bought online.
Still, the disruption helped Alibaba grow in smaller cities and in home delivery of everyday items such as fresh fruit and vegetables, he said. “We are starting to see some positive results in the third and fourth quarter due to the positive structural change that has happened,” Mr. Tam said...
more, including links, charts