Chinese concept stocks are climbing out of the “bottom”.
The behavior of Chinese Internet companies to squeeze the bubble has also entered the final stage.
Those Internet giants that were once abandoned by capital are re-entering the vision of capital. According to the “Wall Street Journal” report, Game Station Chairman Cohen bought hundreds of millions of dollars in Alibaba’s shares and urged Ali to further expand the stock repurchase plan.
It is reported that Cohen is also known as the “King of Retail Concept Stocks”, and the protagonist of the previous retail investors’ short squeeze on Wall Street was GameStop.
According to reports, Cohen has suggested to Alibaba’s board of directors that the repurchase amount should be expanded by another US$20 billion to about US$60 billion.
So why is Cohen targeting Alibaba? Will Alibaba’s board of directors adopt Cohen’s opinion and increase the repurchase amount?
First of all, Kanjian Finance believes that starting from the end of October 2022, Chinese concept stocks have experienced a decent rebound. Alibaba’s US stock has risen by more than 100% from the lowest point, and Bilibili’s US stock has risen by more than 225%. The Hong Kong stock Tencent Holdings also rose by more than 105%, and the Nasdaq Golden Dragon Index also rose by more than 50%…
Under the background of the bottoming out of Chinese concept stocks, U.S. technology stocks have been falling all the way. Under the dual influence of performance and stock prices, U.S. technology stocks will perform quite poorly in 2022. Among them, Meta fell by more than 64%, and Tesla fell by more than 65%. Therefore, American investors have set their sights on Chinese concept stocks, and Cohen is one of them.
According to data, Cohen is currently worth more than $2.5 billion, and his holdings include Apple, Wells Fargo and Citibank. Among them, the proportion of Ali is not too large, but Cohen has a wide “retail investor base”, and these people will follow Cohen’s investment pace to invest.
Under this influence, Alibaba may continue to rise in the future and return to a more reasonable valuation.
However, Kanjian Finance believes that it may be difficult for Alibaba’s board of directors to adopt Cohen’s opinion and expand the repurchase amount by another US$20 billion. Because China concept stocks have passed the “most difficult” moment. Since last year, many China concept stocks have doubled, and with the clarification of policies and new progress in audit issues, the turning point of China concept stocks has reached .
The most important thing is that the Fed’s interest rate hike is coming to an end, and the expectations of Chinese concept stocks have become clear. With further recovery in the future, their performance will also have a relatively good performance.
Secondly, as the largest Internet e-commerce company in China, Ali has a good foundation, a huge scale, and a strong ability to resist risks. After its stock price fell last year, the potential risks have been completely released, so it already has a corresponding investment foundation. , and as the most high-quality Internet asset in China, its subsidiary Ant Financial has also completed rectification, paving the way for listing.
Finally, the past and future of the Internet economy will always play an important role in China’s economic development. Although the performance of these companies has slowed down, in the long run, it is undoubtedly still upward, and after a sharp decline, Chinese concept stocks are all at a low valuation level. With the increasing attention of overseas investors, these Internet companies will be seen by more investors.
At that time, when the market forms a joint force, the Chinese concept stocks dominated by Alibaba will become the new investment direction of the market. Therefore, the US stock investors led by Cohen choose Alibaba, which is actually a kind of taking advantage of the trend.