Shares of Chinese tech major Alibaba (NYSE:BABA) are inching upward today after Reuters reported that Ant Group is in the final lap of its revamp (driven by regulatory authorities) with a fine of nearly $1.1 billion coming up.
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Ant’s initial public offer nearly three years ago was short-lived and the fine from China’s central bank could come over the coming days. Importantly, after this fine in the rearview, Ant could move toward securing a financial holding company license and possibly aim for an IPO again.
The company, founded by China’s tech mogul Jack Ma, has been on a restructuring drive over the past two years and the development comes as the country looks to boost its economy and improve business confidence. Alibaba too was slapped with a nearly 18 billion yuan fine in 2021.
Meanwhile, Alibaba has also launched an AI image generator in China. Called Tongyi Wanxiang, the solution will initially be available to enterprises.
Overall, the Street has a $141.87 consensus price target on BABA alongside a Strong Buy consensus rating. Shares of the company have dropped nearly 9% year-to-date.
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