BABA Stock Forecast: Alibaba Group gains on Ant Group license approval by People’s Bank of China

NYSE: BABA gained 0.78% during Friday’s trading session.
There is a report that the PBOC has approved the Ant Group’s application.
JD.Com could begin to challenge AliBaba in the food delivery market.

Stocks Reporter FXStreet

NYSE: BABA jumped out of the starting bell on Friday but any early surge was quickly erased by a tentative close to the week for the broader markets. Shares of BABA gained 0.78% and closed the trading day at $102.24. The quarterly quadruple witching day for options expiry sent the major averages in opposite directions to close the week. The Dow Jones was the only major index in the red after posting a 38 basis point loss, while the S&P 500 and NASDAQ added 0.22% and 1.43% respectively during the session.

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The major news in China was that the People’s Bank of China (PBOC) has reportedly approved the Ant Group for a financial holding license. This comes after more than a year since the Ant Group IPO was derailed following Beijing’s crackdown on its major tech companies. Ant Group will be a full financial holding company, which many believe will signal a renewal of its IPO and a debut on the public markets in the near future. At the time of its original IPO, the Ant Group would have been the largest IPO in history with a $280 billion pre-IPO valuation.

BABA stock price

AliBaba might soon have a new competitor in the Chinese food delivery market. Fellow eCommerce giant JD.Com (NASDAQ: JD) is reportedly mulling over an entry into the industry. The company already battles with food delivery giant Meituan, and a third tech titan could reduce Alibaba’s overall market share.

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Stocks Reporter

FXStreet

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