AIibaba stock has been on a tear to start off 2022.
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stock has been on a tear to start the year, but its two-day winning streak looks like it’s about to end.
Shares of the Chinese tech giant have gained 16% to start 2022, a big change after losing nearly half its value in 2021. Alibaba stock has risen in five of the year’s eight trading days including a two-day winning streak as investors sold U.S. tech titans and looked for alternatives elsewhere.
Still, Alibaba stock look set to fall Thursday as China’s stock market fell due to concerns about its real-estate sector and the impact of further lockdowns on the world’s second-largest economy. Alibaba stock was off 1.2% in premarket trading in the U.S. at 8:01 a.m.
Still, it’s not hard to find investors eager to buy weakness in Alibaba stock. Sen. Tommy Tuberville of Alabama, for one, bought shares and options on the company last month, despite being criticized for such purchases last year.
On the surface, Alibaba does look cheap. The Bear Traps Report notes that Alibaba’s market cap of $346 billion is just one-eighth of
(AAPL) $2.86 trillion market value after being worth about one-half of Apple over a five-year period. Alibaba still has a long way to go if it’s going reclaim those levels.
China’s government will have a lot to say about that. Whether Alibaba is worth buying ultimately comes down to whether the country will let the company thrive or a…