BABA Stock News: Alibaba Group trades flat during mixed day for Chinese ADR stocks

NYSE:BABA fell by 0.63% during Wednesday’s trading session.
JD.Com and Tencent reach a new $220 million deal to extend their partnership.
It was another mixed session for Chinese ADR stocks.

Stocks Reporter FXStreet

NYSE:BABA inched lower during trading on Wednesday as the Chinese eCommerce and tech giant aims to close out the first half of the year on a positive note this week. Shares of BABA sank by 0.63% and closed the trading day at $116.03. BABA remains a popular stock amongst analysts as 17 of the 19 who officially cover the stock have a Buy rating. The median 12-month price target sits at $162.34 according to TipRanks.

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Stocks remained mixed on Wednesday as investors seem keen on putting the first half of 2022 behind them. The Dow Jones edged higher by 82 basis points, the S&P 500 fell by 0.07%, and the NASDAQ posted a minimal 0.03% loss during the session.

A couple of AliBaba’s bigger rivals, JD.Com (NASDAQ:JD) and Tencent have renewed a partnership that sees JD’s eCommerce website provide preferential treatment to WeChat users. This is an important group of users as WeChat accounts for nearly 1.3 billion monthly active users, most of whom are in China. The deal is for $220 million in JD.Com shares. Tencent was one of the largest investors in JD.com before selling a majority of its stake in the company earlier this year, reducing its position to just 2.3%.

Alibaba stock forecast

It was another mixed session for Chinese ADR stocks, as the sector continues to try and build a bottom from its brutal year of trading. Stocks like PinDuoDuo (NASDAQ:PDD) and JD.Com posted small gains, while Bilibili (NASDAQ:BILI) and Baidu (NASDAQ:BIDU) dropped lower on Wednesday. EV Stocks were also mixed with Nio (NYSE:NIO) and XPeng (NYSE:XPEV) trading lower, while Li Auto (NASDAQ:LI) gained ahead of key June vehicle delivery reports.

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