5 Trending Stocks to Watch Today

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 106

Shares of Alibaba Group Holding Limited (NYSE:BABA) plummeted to a nearly seven-year low on Monday morning. The drop came a day after Chinese President Xi Jinping was named party chief for a third term.

Besides Alibaba Group Holding Limited (NYSE:BABA), shares of NIO, JD.com and XPeng also dropped this morning. The latest selloff shows investors’ concerns related to Xi’s tightening policies around the Chinese tech sector.

Meanwhile, Xi’s zero-Covid strategy has also hampered the growth of several Chinese companies, including Alibaba Group Holding Limited (NYSE:BABA). Shares of Alibaba have already lost about 50 percent of their value so far in 2022.

Separately, investment management firm Mawer Investment Management also mentioned Alibaba Group Holding Limited (NYSE:BABA) in its third-quarter 2022 investor letter, stating:

“Other companies that have seen declines include those that have been impacted by macroeconomic uncertainty in China. Both Alibaba (NYSE:BABA) and Tencent (OTCPK:TCEHY) have reported results that are negative fundamentally, and while both have been under pressure from new competition, the recent results are also a reflection of the economic state in China.”