News
What’s happening with Alibaba shares on Thursday?
What’s happening with Alibaba shares on Thursday?
Alibaba Group Holding Ltd (NYSE:NANNY) is eyeing a sale of convertible bonds to raise close to US$5 billion, following the example of its rival JD.Com, Inc. (NASDAQ: JD) move this week. Both stocks are trading lower on Thursday.
Alibaba has discussed bond sales with investment banks. These bonds can be converted into US-listed stocks to finance share repurchases and growth.
An offer could come this week, Bloomberg quote familiar sources.
Read too: Alibaba Rival PDD’s explosive growth continues, revenue more than doubles
Alibaba is seeking funds to invest in its commerce and cloud businesses, which have lost market share during the nationwide regulatory crackdown. The company remains engaged in a price war with its contemporaries by reducing the prices of its cloud and artificial intelligence services while aggressively pursuing its AI ambitions.
In 2024, Alibaba ratified an expanded share repurchase program.
Alibaba’s American Depositary Receipts fell 6.6% in the first three days of this week, reducing the year-to-date gain to 6.7%.
Meanwhile, reports indicated pessimistic feelings of Short sellers in the US led to a sell-off in Chinese stocks this week. Bearish bets on the iShares China Large-Cap ETF have peaked, pointing to a shift to emerging markets outside China.
Alibaba reported fourth quarter fiscal 2023 revenue growth of 7% year-on-year to $30.73 billion, surpassing analyst consensus of $30.40 billion. ADS-adjusted earnings of $1.40 were below analyst consensus of $1.41.
BABA shares have lost 0.24% over the past 12 months. Investors can gain exposure to stocks through Tidal Trust II CoreValues Alpha China Growth ETF (NYSE:CGRO) It is ETF ProShares Long Online/Short Stores (NYSE:CLIX).
Price Action: BABA shares were trading down 1.72% at $81.26 in pre-market trading at last check on Thursday.
Alibaba photo via Shutterstock
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “News & Everything” Trading Tool: Benzinga Pro – Click here to start your 14-day trial now!
Get the latest stock analysis from Benzinga?
This article What’s happening with Alibaba shares on Thursday? originally appeared in Benzinga. with
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.