Alibaba slides toward record low while investors bet on

Alibaba slides toward record low while investors bet on
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(Nov 23): Alibaba Group Holding Ltd’s October rally has given way to a renewed slump that has the stock heading for a record low while technology rival Inc is extending its recovery and winning favour with analysts. 

Deutsche Bank AG’s Leo Chiang cut his target price for Alibaba’s Hong Kong stock by almost 4% on Monday, citing “near-term challenges,” while raising his target for by 16%, noting “resilient growth amid macro uncertainties.”

Morningstar Inc’s Chelsey Tam echoed similar views in a Nov 19 note, arguing that “Alibaba’s challenges go beyond the economic cycle” and that offers “more clarity on the long-term margin improvement.”

Alibaba shares were down 3% at HK$132.90 at 11:06am in Hong Kong on Tuesday, taking their decline to 18% this month and more than wiping out all of October’s gains. While was also down on the day, in line with the wider market, it is up about 46% from its August low.

Beijing’s tech crackdown means Alibaba will have to shift about 5% of its e-commerce revenue to its competitors, including and Pinduoduo Inc, said Ramiz Chelat, a senior portfolio manager at Vontobel Asset Management.