Alibaba shares surge after Jack Ma appears in Europe, new chip release

Jack Ma, founder of Alibaba Group, attends the opening ceremony of the 3rd All-China Young Entrepreneur Summit on September 25, 2020 in Fuzhou, Fujian Province, China.

Liu Ming | China News Service via Getty Images

GUANGZHOU, China – Alibaba shares in Hong Kong rose 9% on Wednesday after reports that founder Jack Ma traveled to Europe and after issuing a new tranche.

The stock pared some of those gains and closed up 6.6%.

On Tuesday, Hong Kong-based newspaper East Week reported that Ma traveled to Spain over the weekend with his billionaire friends and business partners for a sailing holiday. The report quoted an unnamed source due to confidentiality considerations.

And the South China Morning Post, which is owned by Alibaba, published an article that said what was in Spain on a study tour of agriculture and technology related to environmental issues.

Alibaba was not immediately available for comment when contacted by CNBC.

Somewhere has been the subject of intense debate since it fell out of public view last October after a speech in which he appeared to criticize Chinese regulators.

There is no doubt in my mind that a Jack that is no longer missing will have at least a 10% impact on Alibaba’s share price.

Tariq Denison

GFM Asset Management

The initial public offering of fintech giant Ant Group has subsequently been put on hold. Since then, China’s tech sector has also come under heavy scrutiny from regulators.

Chinese tech companies have seen billions of dollars written off their valuations. US-listed Alibaba shares are down more than 23% year-to-date.

“There is no doubt in my mind that Jack what is no longer missing will have at least a 10% impact on Alibaba’s share price, as that has always been one of the uncertainties that many investors have had about the stock,” Tariq Denison, wealth manager In Hong Kong-based GFM Asset Management, for CNBC.

In January, when Ma appeared for the first time since his October speech, Alibaba shares soared that day.

Alibaba also released some news regarding its cloud business this week. On Tuesday, the company launched a new chip designed for servers in an effort to boost cloud computing capabilities.

The cloud is seen as an essential part of Alibaba’s future growth. It currently represents 8% of the company’s total revenue.

The e-commerce giant also said on Wednesday that it plans to open new data centers in South Korea and Thailand next year to continue the overseas expansion of its cloud business.

“I see today’s move just part of a broader recovery/reversal correction, with Alibaba shares now down 30% from their lows earlier this month, but still 35% below their February highs,” Denison said in an email. “.

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