Chinese Internet companies such as Alibaba ( NYSE: BABA ) and Baidu ( NASDAQ: BIDU ) watched their shares retreat Wednesday amid what appeared to be no major negative news involving the sector.
In fact, Alibaba ( BABA ) got a bit of positive reinforcement from UBS analyst Jerry Liu, who raised his price target on the e-commerce giant's shares to $140 from $130. Liu said Alibaba's ( BABA ) business showed some signs of recovery in June, and that there is "more to come" in the second half of this year, but that investors will need to remain patient over the coming months.
Still, Alibaba ( BABA ) shares pulled back by 2.5% Wednesday, and its stock price is down by 1.4% for the year.
Along with Alibaba ( BABA ), Baidu ( BIDU ) shares fell by 5%, Weibo ( WB ) was down by 4%, Bilibili ( BILI ) fell more than 7%, Tencent Holdings ( OTCPK:TCEHY ) slipped by 1% and Pinduoduo ( PDD ) slumped more than 8% on the day.
NetEase ( NTES ) shares fell more than 4% even though Macquarie analyst Esme Pau on Tuesday started her coverage of the online gaming platform operator with an outperform rating and a $129-a-share price target on the company's stock .
The KraneShares CSI China Internet ETF ( KWEB ) was off by 4.5%. Overall, the day's losses followed on the heels what had been a solid month for Chinese stocks in June .
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Alibaba, Baidu in the red as Chinese Internet stocks retreat