What’s happening to Alibaba stock on Friday?

Alibaba Group Holding Limited (NYSE:BABA) shares traded higher on Friday as it announced plans to allow mainland investors to start trading by changing its listing status in Hong Kong.

Fund manager Give Ming the move is expected to infuse liquidity into the stock.

The Chinese e-commerce juggernaut posted 4 percent growth in the first quarter, missing analysts’ consensus estimate, as domestic e-commerce rivalry and a weak domestic economy played havoc.

Alibaba, which has lost 7% over the past 12 months, trades at a forward price-to-earnings ratio of 8.91x. Arch rival PDD Holdings Inc (NASDAQ:PDD) gained 90% and trades at 9.45x.

Alibaba’s AI aspirations hit a snag after the US stepped up its semiconductor technology embargo against China, which now included Nvidia Corp (NASDAQ:NVDA) sophisticated AI chips.

Alibaba has also started losing domestic AI customers as its AI models fail to generate the necessary computing power.

Shenzhen University of China, Yunda Technology and Zhejiang Lab contacted Amazon.Com Inc (NASDAQ:AMZN), Amazon Web Services and Microsoft Corp (NASDAQ:MSFT) to fill the gap left by US sanctions, according to Reuters.

Alibaba’s Cloud Intelligence Group revenue rose 6% to $3.65 billion in the first quarter.

In the US, Amazon has gained over 31% over the past 12 months and trades at a forward PE multiple of 30.04x

Price action: Shares of BABA traded up 2.80% at $85.28 in pre-market trading on Friday.

Photo via Shutterstock

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