Alibaba Poised to Set Fresh Closing High For First Time Since Debut
- Bloomberg News
Five weeks after its trading debut, Alibaba Group Holding Ltd. could finally close above its first-day closing price today.
The Chinese e-commerce giant, recall, priced its initial public offering at $68 per share on Sept. 18, and then ran up to $99.70 on the day of its highly watched debut before finishing at $93.89.
Then Alibaba embarked on a month-long swoon–along with the broader market. On the way down, a few market-watchers started calling the day of the company’s debut the “Alibaba top,” and suggested stocks had reached peak euphoria and were ripe for a correction.
Alibaba shares bottomed at $82.81 on Oct. 15. And as stock bulls in general have reasserted themselves the past week, Alibaba has joined in. It’s up 2.7% to $94.08 on Thursday, on pace for it sixth up day in the past seven.
Today’s advance, beyond the broader market’s rebound, also comes as Barclays starts coverage of Alibaba at overweight and sets a $107 price target.
Beyond growth in its own operations, Alibaba’s one-third stake in Alipay “could prove an upside catalyst” for Alibaba shares, Barclays said. The investment bank sees “a significant growth opportunity for the online payments and internet banking industry.”
Still to come is Alibaba’s first quarterly report as a public company—it’s due Nov. 4.
