Alibaba stock rockets to best day since 2017

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US-listed shares of Alibaba Group Holdings Ltd rocketed on Monday to their best performance in more than four years as a number of Chinese Internet stocks began a comeback after the recent tough pullback.

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alibaba share baba,
+10.40%
Monday closed at 10.4%, their biggest single-day percentage gain since June 8, 2017, when they gained 13.3%. Monday’s rebound ended a six-day slide for US-listed shares of Alibaba.

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Alibaba was among the leaders in the rally for Chinese Internet shares. Huya Inc. US-listed shares of HUYA,
+9.95%
That day rose 10.0%, while Baidu Inc. BIDU shares,
+7.47%
increased by 7.5%, and iQiyi Inc. IQ shares,
+5.94%
climbed 5.9%. The category has been under pressure recently due to fears of tensions between the US and China, which could force Chinese companies to delist from US exchanges.

Chinese ride-hailing company Didi Global Inc. DIDI,
+9.88%
Late Thursday it said it planned to delist from the New York Stock Exchange and prepare for a Hong Kong listing. The announcement sparked concerns for other Chinese internet companies to follow, leading to a sharp sell-off for the category on Friday.

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While part of Alibaba’s stock rally on Monday could be attributed to a broader rebound for the category, the Chinese e-commerce giant could also benefit from company-specific growth. According to the Wall Street Journal, the company plans to reorganize its e-commerce business.

Alibaba cut its revenue forecast last month due to macroeconomic pressures in China as well as new competitive dynamics, fueling some concerns over the state of its core business in the next few years.

Shares of a major Alibaba rival didn’t add to Monday’s rally: JD.com Inc. US-listed shares of JD,
-3.54%
It dropped 3.5% on the day, down 7.7% from Friday’s session.

Alibaba also announced overnight that its current chief financial officer, Maggie Wu, would step down from his position on April 1. Deputy Chief Financial Officer Tony Xu will replace him, while Wu will serve as an executive director on Alibaba’s board.

Despite Monday’s rally, Alibaba shares are still having a rough year, falling about 47% through 2021.

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