BABA - Why Alibaba Baidu and JD.com Were Down Today
2024-07-15 16:35:00 ET
Shares of Chinese tech stocks Alibaba (NYSE: BABA) , Baidu (NASDAQ: BIDU) , and JD.com (NASDAQ: JD) fell on Monday, down 2%, 5.9%, and 5.3%, respectively, in Monday's trading session.
The downdraft in China-oriented consumer tech names appeared entirely to do with the disappointing economic data that came out of China today.
In the second quarter, China reported just 4.7% economic growth, well below the 5.3% last quarter and below the 5.1% growth that analysts were expecting. While 4.3% growth may seem very strong, remember that, first, China is supposed to be an "emerging" economy and post growth rates above those of developed countries, with its government having set a target of 5% growth. Second, the country was lapping a very low base off last year's depressed numbers, making this miss highly disappointing.
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Why Alibaba, Baidu, and JD.com Were Down Today