Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

JD.com Leads China Tech Rally in US After Alibaba Revenue Beat

Stock Markets Aug 04, 2022 08:27AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters JD.com Leads China Tech Rally in US After Alibaba Revenue Beat

(Bloomberg) -- Chinese tech stocks listed in the US got a fresh dose of good news Thursday morning after Alibaba Group Holding Ltd. (NYSE:BABA) reported a better-than-expected revenue haul for the first quarter despite China’s ongoing economic woes.

Alibaba’s strong report helped drive a rally in its tech peers, with JD.com (NASDAQ:JD), Pinduoduo (NASDAQ:PDD) and Baidu Inc (NASDAQ:BIDU) all seeing gains of at least 2% in premarket trading. Shares of the e-commerce giant gained as much as 7.2%, putting it on track to climb for a fourth consecutive day.

“The company mentioned the business recovery in June which should help other ecommerce players like JD.com and Pinduoduo,” said Henry Guo an analyst at M Science LLC. “Investors had low expectations on China ADRs before this print but Alibaba reports suggests likely business upsides to expectations for those companies.”

Chinese tech stocks have been through a tumultuous ride for more than a year amid regulatory crackdowns and a series of bruising lockdowns that damped consumption. While some analysts have been optimistic about earnings results, traders have been offloading the nation’s stocks with the Nasdaq Golden Dragon China Index down about 20% this year after an 11% decline in July. Still the benchmark has climbed 38% from a March low.

Read more: Alibaba Sales Beat Estimates, Defying Economic Turmoil (1)

Now, Alibaba’s sales beat may be a welcome sign for investors even as the stock continues to face a litany of other headwinds including a struggling Chinese economy alongside regulatory concerns from authorities in both Beijing and Washington. Last week the company was added to the US Securities and Exchange Commission’s list of stocks that are at risk of being de-listed from American exchanges. That came just days after Alibaba said it would be seeking a primary listing in Hong Kong.

All eyes will be on quarterly results due from other Chinese tech giants like Baidu, JD.com and Pinduoduo, which are all expected to release their numbers later this month. Baidu’s shares have dropped about 8% this year, while JD.com and Pinduoduo fell more than 12% each.

©2022 Bloomberg L.P.

 

JD.com Leads China Tech Rally in US After Alibaba Revenue Beat
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email