Alibaba Stock Is Picking Up Steam: Is It Overdue for a Big Rally?
Since the start of July, the Chinese tech stock has risen by 17%.
Overview
Many tech stocks have been soaring in recent years due to enhanced growth opportunities relating to artificial intelligence (AI). But while investors have been fairly bullish on tech as a whole, they've remained cautious when it comes to geopolitical uncertainty, which is at least part of the reason why Chinese-based Alibaba Group Holdings (NYSE: BABA) hasn't generated strong returns. In five years, it has lost close to half of its value.
Recently, however, it's been showing some signs of life. In the past few weeks, as investors have been moving out of high-priced tech stocks, Alibaba's stock has been rallying. On Monday, it closed at just over $112, up about 17% from the roughly $96 it was trading at just a few weeks earlier, toward the end of June.
Details
Given its beaten-down valuation and investors potentially rotating out of high-priced stocks into more reasonably priced options, could this be the beginning of a much larger rally for Alibaba?
Source
Originally published at www.fool.com.