As we wrap up 2021 we have to deal with another COVID 19 variant, and it seems that stocks are only moving down because of it. One company is not. Alibaba is up 13% in the last 5 days and has had its best day in 4 years!
Why is Alibaba up you may ask? Well, we take a step back to look at how it has done this year so far. In January 2021, Alibaba was priced at roughly $250, today it is at $125. So you can say that it has lost half its value in 2021. That is a massive loss. Both poor quarterly results and regulatory fears played a part in the stock's decline.
However, the market seems to be pleased with the restructuring changes that are happening within the Chinese e-commerce company. Changes have been made to help Alibaba move forward. How can they turn this around? A new CFO and a shakeup of the company's core commerce division are the first steps. Citi now has a target price of $234.
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