Aug 30, 2021 (Baystreet.ca via COMTEX) -- China-based stocks staged a massive rally that rewarded bottom fishers. Nearly all of the most popular companies in China rose except for one: Alibaba (BABA).
JD.com /zigman2/quotes/205122565/composite JD -7.71% posted a 38% Y/Y revenue growth to $39.3 billion. It earned 45 cents a share on an adjusted basis. JD added over 32 million new users, thanks to aggressive promotions. This is the fastest user growth in JD.com's history.
Pinduoduo /zigman2/quotes/208876581/composite PDD -8.16% , an agriculture-focused technology platform, posted profits for the first time in its history. Revenue rose by 106.4 Y/Y to $3.57 billion. IT earned 44 cents a share (non-GAAP). Monthly active users rose by 30% Y/Y to 738.5 million, beating the 759.2 million consensuses.
JOYY /zigman2/quotes/203508413/composite YY -12.55% rebounded from sub-$40 lows on rumors of a buyout. Reuters reported that top shareholders were working on a plan to take the company private. JOYY later denied the rumors but the stock did not fall.
Alibaba's rally faded fast. After trading at new 52-week lows at $152.80, BABA stock rallied to over $170 by August 24 only to face selling pressure. Markets widely believe that the Chinese government will continue to hammer more regulations that penalize Alibaba. Investors exposed to the sector should avoid Alibaba while starting positions in the aforementioned companies instead.
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