With lingering caution over the Chinese economy and cutthroat market competition, short bets on Alibaba spiked last month. But a share price that’s still relatively attractive and low investment levels among global funds are seen leaving room for a prolonged rally.
Fund managers see potential for Alibaba Group Holding to extend the US$250 billion stock rally this year that’s made it China’s hottest artificial intelligence trade.
Its US-listed shares have more than doubled as investors buy into Beijing’s vision for self-reliance in the new tech landscape. And this poster child of China’s AI hopes remains more than 65% below its all-time high while major American hyperscaler stocks have peaked in recent months.
