Ever since the start of 2023, Alibaba stock has been posting favorable gains due to the reopening of the Chinese economy. According to experts, this move by the Chinese will help the private economy, especially the companies such as Alibaba Group Holdings (BABA).
Despite all the shortcomings in the last few years, we can't deny the strong foothold of Alibaba in the Chinese consumer market. According to available data, Alibaba's reach is around 1 billion consumers, which is enough reason for the e-commerce company to continue growing.
Alibaba's (BABA) stock was at an an-times high during 2020, which was the peak for this e-commerce company. But now, the company's market cap has taken a severe hit. According to data, Alibaba's market cap is around $300 billion, and the company had to let go of 15,000 of its employees in 2022 as well.
So far, Alibaba is doing great as the company shares are already 67% higher than their low of October 2022. Similarly, the ADRs of Alibaba was trading around $117.01 when checked last time.
According to analysts, there's another reason for the bullish behavior of Alibaba stock besides the good news of the Chinese economy reopening.
Recent reports suggest that Jack Ma will be ceasing control of the Ant Group. In case you didn't know, Alibaba has a stake of 33% in the Ant Group. For many, it is good news that Jack Ma's influence is slowly decreasing in the Chinese tech sector.
In fact, many famous analysts who were on the sell side are now also bullish on Alibaba. For example, Morgan Stanley and Goldman Sachs have added Alibaba to their top ticks list for buying.
According to Goldman, the company that will benefit the most from China's reopening is Alibaba. So on that front, there's only good news for Alibaba investors.
This comes at a time when we are only a few weeks into 2023. And investors still remember how 2022 was one of the worst years for the tech sector around the globe.