BABA, BIDU, JD Stocks Rebound: Why Key China Tech ETF Notched Best Day In A Month

• The KraneShares CSI China Internet ETF (KWEB), which tracks Chinese tech stocks, rose 2.8% on Monday, its best single-day performance in over a month.
• Stocktwits sentiment for BABA turns ‘extremely bullish,’ amid a 620% spike in message volume over the past 24 hours. 
• Alibaba will release its December earnings on March 19. 

Shares of Alibaba Group, JD.com and Baidu, Inc., among the most closely watched Chinese stocks listed in the U.S., are showing early signs of a rebound, as Washington signals that its war with Iran may be nearing an end.

Alibaba and Baidu stocks have gained for two straight days; JD shares have gained for three sessions, advancing by over 8% despite the Chinese e-commerce major posting weak quarterly results. The KraneShares CSI China Internet ETF (KWEB), which tracks Chinese tech stocks, rose 2.8% on Monday, its best single-day performance in over a month.

Investors are particularly interested in Alibaba stock, which many retail traders believe is oversold. The stock delivered a stellar performance last year, surging 73% on the back of a wave of AI-related launches that cemented Alibaba’s pole position in China’s AI market.

Retail’s View On BABA, JD, BIDU

On Stocktwits, retail sentiment has been ‘extremely bullish’ for BABA since last Thursday and for KWEB since Friday. The sentiment for JD and BIDU was ‘bullish’ as of the last reading. 

Messages on the BABA stream rose 620% in the last 24 hours, according to Stocktwits data.

“I have stated this multiple times. With BABA being this oversold, the last time it touched 19 RSI, the company released news and stock jumped 20%+ in one single day... I expect nothing different this time. Something big will be announced soon,” a user speculated.

Alibaba Earnings Next Week

Alibaba just announced that it would release its December-quarter results on March 19. Analysts expect sales to increase by 4.8% to $34.9 billion and adjusted profit to decline by about 50% to $1.59 per share, per Koyfin estimates.

Asian Stocks Rebound On Iran War Update

The boost is being driven by signals from the U.S. that the war in Iran may be nearing an end, triggering a rebound across Asian markets. 

Trump said in a press conference on Monday that the war in Iran would end “very soon.” “We’re achieving major strides toward completing our military objective,” he said nine days after launching joint military strikes that took out Iran’s Supreme Leader, Ayatollah Ali Khamenei.

The Hang Seng Tech Index, majorly composed of Chinese tech companies, rose 1.4% by Tuesday afternoon local time. South Korea’s KOSPI is leading gains, rising 4.5% after its worst selloff on record last week. The Hang Seng Index rose 1.6%, Singapore’s FTSE Straits Times Index added 1.5%, and Japan’s Nikkei Stock Average rose 2.4%.

Alibaba shares are still down 9.5% year to date, while Baidu shares are down 6.3% and JD shares are down 4.3%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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