Amongst a market wide pullback, Alibaba (BABA) stock’s fall from grace over the past year has been one of the more eye-catching developments.
The ecommerce giant just can’t seem to catch a break. Covid has reared its ugly head in China again and the prospect of US desisting for Chinese stocks is ever-present. And these developments clamber on top of regulatory clampdowns in China, a slowing economy and Alibaba going heavy on the investment side.
Looking for a bright spot? Well, one is hard to find, appears to be the view of J.P. Morgan’s Alex Yao.
“Due to rising geopolitical and macro risks, we believe a large number of global investors are in the process of reducing exposure to the China Internet sector, leading to significant fund outflows from the sector,” the analyst recently said. “We believe Alibaba, as one of the most widely owned stocks within the China Internet…
