Alibaba Group Holding Limited (NYSE:BABA) stock gained Friday premarket as it received a clean chit from the domestic regulator after over three years of investigative scrutiny since the end of 2020.
“From the inspection and evaluation, Alibaba Group has completely stopped the monopoly behavior of ‘picking one from two,” SCMP cites the regulator.
The Chinese regulator penalized Alibaba by $2.8 billion in 2021, equivalent to 4% of the e-commerce juggernaut’s 2019 revenue.
Also Read: Alibaba’s Stock Connect Addition May Unlock $3.2B, Boost Global Markets: Report
Alibaba’s fintech affiliate Ant Group’s ambitious initial public offering also succumbed to regulatory scrutiny.
Alibaba Group stock lost over 13% in the last 12 months as it battled intense domestic e-commerce rivalry in a weak economy as it recuperated from the over three-year-long domestic regulatory crackdown with the U.S. semiconductor sanctions, further jeopardizing its artificial intelligence ambitions.
Recent reports indicated China is trying to trigger economic growth through various initiatives, including earmarking 43.5 billion yuan ($6.12 billion) to build computing data centers and extending support to technology start-ups and the domestic electric vehicle industry.
Will Alibaba Stock Go Up?
When trying to assess whether or not Alibaba will trade higher from current levels, it’s a good idea to take a look at analyst forecasts.
Wall Street analysts have an average 12-month price target of $106.45 on Alibaba. The Street high target is currently at $130.0 and the Street low target is $85.0. Of all the analysts covering Alibaba, 9 have positive ratings, 2 have neutral ratings and no one has negative ratings.
In the last month, 9 analysts have adjusted price targets. Here’s a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street’s most accurate analysts. Check out how analysts covering Alibaba have performed in recent history.
Stocks don’t move in a straight line. The average stock market return is approximately 10% per year. Alibaba is 8.37% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about Alibaba, visit here. If you want to go above and beyond, there’s no better tool to help you do just that than Benzinga Pro. Start your free trial today.
Price Action: BABA stock traded higher by 4.91% at $85.01 premarket at the last check Wednesday.
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This article Alibaba Clears 3-Year Regulatory Antitrust Scrutiny, Stock Gains originally appeared on Benzinga.com
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