---
title: "Alibaba Scores 24% Winning Streak as Low Valuation Lures Buyers"
description: "Shares of Alibaba Group Holding Ltd. have made an impressive recovery over the past week, after a lower-than-expected fine for Meituan added to a growing list of positive factors for the battered tech giant."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2021-10-12-alibaba-scores-24-winning-streak-as-low-valuation-lures-buyers/"
published: "2021-10-12T04:57:59"
lang: "en-ZA"
word_count: 186
---

# Alibaba Scores 24% Winning Streak as Low Valuation Lures Buyers

> Shares of Alibaba Group Holding Ltd. have made an impressive recovery over the past week, after a lower-than-expected fine for Meituan added to a growing list of positive factors for the battered tech giant.

By Bloomberg · Published 12 October 2021, 06:57 SAST

## Content

The stock climbed 24% since hitting a record low in Hong Kong on Oct. 5 through Monday, after having “gotten very cheap,” according to James Cordwell, an analyst at Atlantic Equities LLP. Alibaba trades at 17 times forward earnings estimates, compared with a multiple of 25 for Tencent Holdings Ltd. and 39 for JD.com Inc. Tencent shares have gained 10% since a week ago.

The fine “led to some speculation that we are getting toward the end of some of the regulatory scrutiny the sector has been facing,” Cordwell said. Easing U.S.-China tension and signs of improvement in consumer spending over the Golden Week holiday are also positive developments, he added.

Analysts are encouraged by Alibaba’s climb beyond its 50-day moving average. The $469 billion e-commerce giant has no sell ratings, with 36 out of 38 analysts giving it a buy, according to Bloomberg-compiled data. They forecast shares to rise 45% over the next 12 months versus a 28% and 18% gain for Tencent and Meituan, respectively.

Investors may also be thinking “it’s time to reassess the stock” ahead of Alibaba’s quarterly earnings release, Cordwell said.