Why Alibaba Stock Surged Today
Shares of Alibaba Group Holding (NYSE: BABA) were rising in early trading this morning, up as much as 6.4% before settling into a 5.9% gain as of 11:15 a.m. ET.
The gains seem to be due to a combination of two factors. One could be a mere "buying of the dip" after a down day yesterday, when speculation ran rampant that a large investor may be getting ready to sell Alibaba shares. Second, news on Tuesday indicated China's state-backed investment funds may be buying local shares, which could put a near-term floor under beaten-down Chinese stocks.
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Source Fool.com
