In what has been a routine banner year for the Alibaba Group, it has posted yet another steady period of strong earnings after Thursday's revelation of the company's growth. This is despite what had been happening with Chinese stocks, what with the US and China yet threatening each other with a fresh round of tariffs.
Chinese Internet companies have seemingly felt the effects of the dispute the hardest. Case in point: ZTE Corp. and its multi-million dollar with the US government are in danger right now, after the passing of the defense bill and the different harmful facets of the US trade tariff. Seeking Alpha reports that it matters not how the company has done in the past and is doing right now-Chinese Internet companies have been reeling from the aftereffects of the harmful China-US trade dispute.
Chinese firm Alibaba has a chance to break from this trend. Thursday is a red letter day for the company, which will announce its earnings before the opening bell on the NYSE tolls. However, an overall analysis of the company's stock paints a completely different picture.
It is a tale of two results, what with the company initially posting a strong start compared to other such firms since December of 2016 up to January. That, however, was short-lived; perhaps reeling from the effects of China and the US' trade dispute, the ratings have gone down and up, mimicking a rocky travel on choppy waters.
Alibaba-and Tencent, in the connection, may turn out to be quite the Chinese Internet story, according to Fortune. Based on these facts, the Alibaba Group has a huge responsibility to keep things rolling along. China is looking at a tech transformation led by this Internet giants-and they should be able to lead the way in the coming years.
There will always be problems, however, as evident in the case of the Alibaba Group. There's also the case of the still-restrictive rules of the Chinese government. Whether this affects the way the Alibaba Group does business and how their business runs remain to be seen.
Technical analysts are still looking at different pictures in the case of Alibaba. One could see a company on rocky waters; another could see a company reeling naturally from economic ripples caused by trade disputes and seasonal weaknesses. This could become a double-pattern, one that Alibaba should address, and soon.
