Alibaba shares fall on MS downgrade
Alibaba, all sessions, sinks on a Morgan Stanley downgrade as rival Pinduoduo overtook it to become the most valuable e-commerce firm. IG financial analyst @AngelineOng gets the details behind the downgrade and the share reaction.
(Video Transcript)
'Overweight' Alibaba downgraded by Morgan Stanley
Now, another stock that we are watching for you is Alibaba. This is the retail giant, just pulling up the shares here for you. We've got all sessions on the IG platform. Alibaba's shares are currently down around 1.2% after Morgan Stanley (24 Hours) downgraded the stock to equal weight from overweight.
Now, what's happening here is that Morgan Stanley is fighting a slower turnaround in customer management revenue and also uncertainty from the cloud spin-off withdrawal and lack of capital management catalysts without cloud distribution.
Shares down 15% from last year
What's also interesting is that Morgan Stanley has named Temu - for those of you that are not familiar with Temu, it's another online retailer very much used in Asia and it's owned by Pintuotuo - as one of its top picks in Chinese e-commerce and raised the price target for Pintuotuo to $181 from $117.
Now, you can trade Pintuotuo when the cash open starts. In terms of Alibaba, well, Alibaba's shares are down around 15% at year-to-date. However, perhaps a little bit more now given in all sessions, it's down 1.2%.
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