Alibaba Group Holding Limited (NYSE:BABA) shares rose on Friday as the company announced plans to allow mainland investors to trade through changes to its listing status in Hong Kong.
Fund manager Dai Ming expects this move to provide liquidity to the stock.
The Chinese e-commerce giant reported 4% revenue growth in the first quarter, falling short of analysts’ consensus estimates, as domestic e-commerce rivalry and a weak domestic economy spoiled its performance.
Alibaba, which has lost 7% over the past 12 months, trades at a price-earnings ratio of 8.91. Arch rival PDD Holdings Inc (NASDAQ:PDD) rose 90% and is trading at 9.45x.
Alibaba’s efforts in the field of artificial intelligence encountered obstacles after the US tightened its semiconductor embargo against China, which now also Nvidia Corp. (NASDAQ:NVDA) advanced AI chips.
In addition, Alibaba is increasingly losing domestic AI customers because its AI models do not generate the required computing power.
The Chinese University of Shenzhen, Yunda Technology and Zhejiang Lab turned to Amazon.Com Inc (NASDAQ:AMZN), Amazon Web Services and Microsoft Corp (NASDAQ:MSFT) to fill the gap left by U.S. sanctions, according to Reuters.
Alibaba’s Cloud Intelligence Group’s revenue rose 6% to $3.65 billion in the first quarter.
In the US, Amazon has gained over 31% in the last 12 months and is trading at a P/E ratio of 30.04.
Price promotion: At last check on Friday, BABA shares were trading 2.80% higher at $85.28 in premarket trading.
Photo via Shutterstock
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This article, “What’s happening with Alibaba stock on Friday?” originally appeared on Benzinga.com
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