⚠ $BABA-W(09988)$ shares are trading 3.9% lower to HKD 98.90 as of 231PM today, breaking below the psychological HKD 100 level and trading to its lowest price level since 9 April 2025
While today's move is partly sector-driven, with tech shares seeing a global rout given overvaluation concerns, Alibaba is nevertheless a standout underperformer versus its China tech peers
📉Today's sell-down takes its one month performance to -18%, compared to the Hang Seng Tech's 9.9% one-month loss, as the company is weighed down by company-specific developments
Earlier this month on 8 June, the US Pentagon designated the company as a "Chinese military company"
Later on 11 June, Beijing's market regulator chastised leading e-commerce platforms including Alibaba for misleading promotions for its 618 campaign
There was also market chatter this month on whether Alibaba would lose out to Huawei to win government-backed data center projects, and concerns regarding pricing pressure on Alibaba's AI tokens which would erode the company's cloud margin outlook
👨🏫We previously shared SGX Academy Trainer Dan Chang's technical views (https://warrants.com.sg/marketnews/highlight/todayhighlight/7885) on Alibaba shares, where he said that the HKD 100 support would be retested
Investors who believe that Alibaba may see a dead-cat rebound toward the HKD 100 level may wish to consider trending Alibaba call warrant $Alibaba MB eCW261103(ETKW.SI)$ (https://warrants.com.sg/tools/livematrix/ETKW) which will move approximately 6.3 times more than Alibaba shares based on its effective gearing level. As an example, the warrant is down 23.8% to SGD 0.016 as of 245PM given Alibaba's 3.7% fall
Those who believe that Alibaba may sink further from here can consider trending Alibaba put warrant $Alibaba MB ePW261005(JCJW.SI)$ which moves approximately 3.4 times more than Alibaba shares based on its current effective gearing level The warrant is up 15.3% to SGD 0.083 as of 245PM
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