Why Alibaba Stock Is Falling Today
Shares of the large Chinese e-commerce and tech company Alibaba Group (NYSE: BABA) traded nearly 3% lower as of 12:47 p.m. ET today for no obvious reason, but likely due to the broader market sell-off after new inflation data this morning. A Wall Street analyst also lifted his price target on the stock on Friday.
Stocks across the board were reeling today after the Federal Reserve's preferred gauge for inflation, the Personal Consumption Expenditures index, rose 0.4% in February from the prior month and came in 2.8% higher year over year. Both numbers were slightly above estimates, raising concerns about higher inflation.
Meanwhile, Mizuho analyst James Lee maintained an outperform rating on Alibaba and upped his price target from $140 to $170, citing strong progress in the company's artificial intelligence (AI) strategy. Lee also believes that the company's AI spending will result in better product recommendations and therefore more products sold.
Source Fool.com
Alibaba Group Holding Ltd ADR Stock
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