Yastrday is
8/20/2024 10:42am
I apologize for the confusion. Yesterday, Alibaba Group's stock (BABA) experienced a positive net fund flow, which can be attributed to several key factors:
1. **Potential Inclusion in China Stock Connect Program**: Alibaba's upgrade to a primary listing in Hong Kong and its anticipated inclusion in the China Stock Connect program by the end of September could attract significant inflows of up to about $20 billion. This program would allow Chinese investors to buy Alibaba shares, which could provide a much-needed boost to the stock.
2. **Analysts' Positive Ratings and Higher Price Targets**: Despite mixed first-quarter results, analysts have provided positive ratings and higher price targets for Alibaba. For example, Mizuho analysts maintained a Buy rating with a price target of $140, indicating confidence in the company's future performance.
3. **Strategic Initiatives and Market Leadership**: Alibaba's focus on enhancing user experience, offering quality products at attractive prices with great service, has led to stabilizing market share of Taobao and Tmall Group, returning the business to a growth trajectory. The cloud business achieved positive revenue growth momentum, driven by public cloud and AI-related product adoption as they continue to invest to maintain their market leadership.
4. **Dividend and Share Buyback Announcements**: Alibaba announced a two-part dividend, including an annual cash dividend of $1 per American depository share and a "one-time extraordinary cash dividend" of 66 cents per ADS, which could attract investors looking for income. The company also added $25 billion to its share buyback program through March 2027, signaling confidence in its financial health and future prospects.
These factors, combined with the potential for increased investor interest due to the China Stock Connect program, are likely contributing to the positive net fund flow for Alibaba Group.