- The back-and-forth between tech/WFH names and reopening/cyclical counters has been playing out globally, creating large price swings.
- Speculations that the toughened regulatory stance on internet platforms was directed at Jack Ma spooked Alibaba's shareholders, worried of escalating retaliatory actions on the internet titan.
- I postulated that the sharp share price correction has turned Alibaba into a beneficiary of both the growth/WFH trade and the rotation into value plays.
- Tencent appears to be well-positioned to navigate the regulatory crackdown given its less aggressive exploitation of its ubiquitous messaging app and prior experience in adapting to new games approval regime.
For further details see:
Alibaba Emerging As A Value Play, Tencent Navigates Regulatory Minefield