So long as there are people who are greedy for fast returns, we will continue to see such manipulation of the market by the Big Boys who are the only ones in long run laughing all the way to the bank.
Hate to be a naysayer since I think Alibaba has potential for great returns to investors but that's for the long term unfortunately. It's too early to say their venture into this new area is a success and we need to see more visible evidence instead of data that's provided by Alibaba. We know that Chinese companies are not known to share details of their businesses... especially when it's bad news.
This is an attempt to talk up the market using old news...first chapter, protests by Chinese against zero Covid approach; 2nd Chapter a few weeks ago, Chinese Govt relaxing 'internal controls' and nothing heard about relaxing border controls; 3rd Chapter which is ongoing... relaxation of internal controls coupled with weak vaccination results in rampant increase in COVID infection nationwide and we're still waiting for the fallout from that. Don't see how we can read from this that China is opening up let alone that Alibaba going to profit from that... let's not forget Alibaba is not the favoured child of Chinese Govt anymore...
When they were comparing Pinterest to Shopify, it was already clear that the latter had a more robust and sustainable business model. I wouldn't buy into Pinterest except as a possible short term quick profit target.
All things said, most of us will agree that Alibaba remains a structurally sound company with high long term growth potential. Nevertheless we cannot assume that there's no further significant downside in its prices as so long as China refuses to change its unsound COVID-19 policy and open its economy again, the shares of Alibaba will continue to gravitate downwards. We must also not forget that even if China opens up again, it will still take time for the Chinese consumer to recover their buying power which has been dealt an almost death blow by the lengthy closure of China, leading to increased poverty as businesses and workers struggle to survive.
Opportunity for those who bought into bear market to offload whatever stock they have of companies without the strong fundamentals to justify investing in long term.
Looks like History is gonna repeat itself as such talking up of market by supposed gurus encourage reckless market behavior leading to losses when the market proves them wrong. It's too early to predict market movement from just a data blip and it's highly unlikely that the powers dictating interest rates will be convinced by it to change their determination to bring inflation down convincingly.