Good news for Alibaba

Good news for Alibaba

2022-12-16 • Updated

Alibaba’s affiliate Ant company may become the largest IPO not only now, but also in the entire history. Let’s discuss what it may mean for traders.

What is Ant?

Jack Ma founded both Ant Group and Alibaba, the latter has a 33% stake in the fintech firm. Ant Group, or, as it is sometimes called, Alibaba’s fintech arm, is China’s leading mobile payments company. Notably, Ant’s main payments service, Alipay, has 900 million users in China and over 1 billion worldwide. Unlike the rest of the world, just a small part of the Chinese population uses credit cards. Instead of that, they prefer app-based payments. Here’s the most interesting thing: once people download Alipay, Ant will offer them other products and services - both financial and non-financial. It is an online mall providing anything from loans and travel services to delivery services. Therefore, people got used to the whole ecosystem and will unlikely change it in the future. Therein lies the uniqueness and success of this company.

What happened?

All this fuss is because Ant Group is preparing to list shares simultaneously in Hong Kong and Shanghai. The dual listing may drive the company even above Saudi Aramco’s record of 29 billion dollars IPO. Analysts widely expect that the firm will reach a value of 225 billion dollars, if it really raises 30 billion dollars in the listing on the Hong Kong stock exchange and Shanghai’s Star market. Ant is growing quite fast. It announced a revenue of 17 billion dollars last year, that is a 40% increase from 2018 levels. Let’s look at the charts.

Technical tips

Alibaba has risen significantly in 2020. The coming announcement may drive the stock even higher. If it breaks out the $280 mark, it will open doors towards the key psychological level of $300. Otherwise, if it falls below the support of $270, it may dip down to the next one at $260.

ALIBABADaily.png

LOG IN

Similar

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

XBRUSD: Prepares to Correct Intraday Rally
XBRUSD: Prepares to Correct Intraday Rally

Bearish Scenario: Sales below 80.00 with TP1: 79.34, TP2: 78.94, TP3: 78.55, and 78.00 Bullish Scenario: Buys above 78.00 (wait for a retracement to the zone) with TP: 79.34 TP2: 80.00, and TP3: 81.00

Latest news

XAUUSD: Bears Prepare To Takeover
XAUUSD: Bears Prepare To Takeover

On Friday, the gold price (XAUUSD) retreated from a recent two-week high, facing selling pressure. This decline was driven by hawkish minutes from the FOMC meeting, indicating the Fed's reluctance to cut interest rates. Elevated US Treasury bond yields, supported by a "higher-for-longer" narrative, further weakened demand for gold...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera