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Alibaba’s Stock Seen Rising 45% After Pullback

Matthew Johnston

The past month has not been good to Alibaba Group Holding ( BABA), as the company’s ADR shares fell more than 10% before making a slight rebound. Sanderson argues that the recent selloff coincides with the weakening of the Chinese yuan, a somewhat regular occurrence that suggests only a slight correction in Alibaba’s stock price based on past performance. Sanderson noted that in every currency-volatility event prior to the most recent episode, Alibaba shares managed to post a “much greater recovery” than the gains lost during the initial selloff.