Alibaba’s stock hits 52-week low amid trade war | Digital Asia

News Update

 

This past Tuesday morning, Eastern Standard Time, Alibaba’s hit a 52-week low of $146.73 per share. That figure had risen only marginally by the time trading closed at 4pm.

The Chinese titan, which is listed on the New York Stock Exchange, has seen a significant drop in share value since its high point earlier this . The going rate of $211.70 also marked a record for the company. In just a few months, however, that price has dropped over 30%.

The latest figures also represent a 19% decline from the beginning of this year, when Alibaba was trading at $183.65 a share.

Alibaba is far from the only Chinese tech company suffering from a sagging stock price. Just two days ago, soon after announcing a large-scale company restructure, Tencent shares hit a 15-month low. Both companies’ dips in value are likely symptoms of China’s slowing economy as well as escalating trade tensions with the US, which are hitting supply chain-dependent tech companies especially hard.

In addition, on September 10 Alibaba’s patron saint-cum-founder Jack Ma announced that he would step down from his position of company chairman in a year, although he’d likely keep a stake in the company. The news triggered a small fall in Alibaba’s value, to $157. (Ma, however, topped this year’s Hurun’s China Rich List anyway.)

But despite the apparent downturn in fortune, US analysts remain fairly positive about Alibaba’s . Morgan Stanley lowered its price target for the company to $220 but maintained a “hold” rating on BABA stock. Similarly, Goldman Sachs kept its “buy” rating for Alibaba, and even raised its price target by $6, to $247.

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And at least one Goldman Sachs analyst maintains that he’s pretty optimistic about a change in fortunes for Alibaba, citing factors such as the company’s cloud , food-delivery business, and Ant Financial, currently valued at $150 billion.

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