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Alibaba’s stock surges after Jack Ma’s appearance in Europe, new chips released

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

Ryumin | Chugoku Shimbun by Getty Images

Guangzhou, China — Alibaba’s Hong Kong stock rose 9% on Wednesday after founder Jack Ma traveled to Europe and released a new chip.

Stock prices moderated some of these rises, rising just under 7% in the afternoon trading.

On Tuesday, Hong Kong-based publication Yeast Week reported that Ma traveled to Spain over the weekend for a sailing vacation with his millionaire friends and business partners. The report cited sources that could not be named due to confidentiality considerations.

Alibaba-owned South China Morning Post later published an article reporting that Ma was in Spain for a study tour of agriculture and technology related to environmental issues.

Alibaba was not able to get immediate comments when contacted by CNBC.

The whereabouts of horses have been the subject of intense debate since leaving public in October last year after a speech that appeared to criticize Chinese regulators.

There is no doubt that Jack Ma’s disappearance will affect Alibaba’s share price by at least 10%.

Tariq Denison

GFM Asset Management

After that, the initial public offering of Ma’s fintech giant Ant Group was suspended. Since then, China’s technology sector has also been under close scrutiny by regulatory agencies.

Chinese tech companies have seen billions of dollars wiped out of their valuation. Alibaba’s US-listed stocks have fallen by more than 23% year-to-date.

“There is no doubt that Jack Ma’s failure to go missing will affect Alibaba’s share price by at least 10%, as this is one of the uncertainties many investors have about stocks. That’s right, Tarik Denison, a manager of GFM Asset Management based in Wei Hong Kong, told CNBC.

Alibaba’s stock soared that day in January, when horses reappeared for the first time since their October speech.

Alibaba also released some news this week related to cloud business. On Tuesday, the company launched a new chip designed for servers to enhance cloud computing capabilities.

The cloud is considered an important part of Alibaba’s future growth. It currently accounts for 8% of the company’s total revenue.

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

“Today’s move is only part of a broader recovery / reverse correction, where Alibaba shares fell 30% from their lows earlier this month, but 35% below their February highs,” Denison said in an email. I see it. “

Alibaba’s stock surges after Jack Ma’s appearance in Europe, new chips released

Source link Alibaba’s stock surges after Jack Ma’s appearance in Europe, new chips released

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