|Bid||53.92 x 3000|
|Ask||53.99 x 1300|
|Day's Range||53.60 - 54.03|
|52 Week Range||40.24 - 59.00|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||4.19%|
|Beta (5Y Monthly)||1.62|
|Expense Ratio (net)||0.70%|
Five experts recommend everything from blue-chip stalwarts and gold to a high-tech battery maker and a little-known home builder.
China's markets and country-specific ETFs led the charge on Thursday after Chinese officials announced monetary easing to start off the New Year. Among the best performing non-leveraged ETFs of Thursday, the KraneShares CSI China Internet Fund (KWEB) increased 6.0%, Invesco Golden Dragon China ETF (PGJ) jumped 5.6% and Invesco China Technology ETF (CQQQ) advanced 5.2%. Meanwhile, the iShares MSCI China ETF (MCHI) , the largest China-related ETF by assets, rose 3.1%.
Despite agreeing to a “phase one” trade deal, the U.S. and China will still be locking horns when it comes to utilizing the latest/greatest technology. “As we approach 2020, the heated technology conflict between the U.S. and China shows no signs of a thaw,” wrote Zak Doffman in Forbes. China will go to great lengths in order to obtain tech dominance, as evidenced by “Huawei’s role in international 5G networks and on China using its influence to curb political criticism of its domestic policies”—Doffman noted in the Forbes report.
As the U.S. and China move toward reconciliation, Chinese technology stocks and sector-related exchange traded funds could be among the top winners in in a phase one trade deal. Morgan Stanley has highlighted 29 Chinese stocks that are most likely to benefit from the completion of a phase one deal between the U.S. and China, and almost half of them include information technology names, which have been weighed down by increased trade barriers, followed by consumer sector, CNBC reports. “These two sectors saw the biggest scale of valuation re-rating based on their previous reaction to de-escalation events,” Morgan Stanley said in a note.
The technology race between the U.S. and China can be linked directly to the amount of business investment that each nation receives. “When it comes to assessing the relative strengths of China and the U.S. in the tech field, most analysts look for the amount of venture investment that the sector attracts,” wrote Samuel Bocetta in a Daily Caller article. “Rising investment in China has been spurred by the Chinese government’s ambition to make the country a tech superpower,” the article added.
Chinese e-commerce powerhouse Alibaba set a sales record on “Singles Day,” which is a massive 24-hour shopping event. It’s a play worth noting as the second largest economy looks to wean itself from dependence on the U.S. The topic of technology has been a hot button topic during the U.S.-China trade war. The “Singles Day” event last year took in more sales than any single U.S. event, including Black Friday and Cyber Monday.
Investors seeking to tap Singles' Day benefits in a diversified way should focus on the following four ETFs that provide substantial exposure to the Chinese e-commerce segment.
Chinese technology-related ETFs led the charge on Thursday after Internet giant Baidu (NasdaqGS: BIDU) revealed better-than-expected third quarter results and the U.S. and China were moving toward reconciliation. ...
The Chinese technology sector has fallen victim to the protracted U.S.-China trade war, but as progress is made, this downtrodden tech segment along with related exchange traded funds could be an opportunity for investors. Invesco’s chief global market strategist Kristina Hooper argued that now is the time to buy Chinese technology stocks, adding that China has the most to gain from trade negotiations and may even emerge from the war as a winner, CNBC reports. “This could be a scenario where China is actually able to stimulate its economy enough to ride out this war,” Hooper told CNBC.
The who’s who of technology were nowhere to be found at one of the biggest stages when it comes to China internet tech as Google, Facebook and Apple were no-shows amid the U.S.-China trade war, which features key issues like tech. “Many big technology names from the United States stayed away but some smaller American firms showed up for China’s main internet conference at the weekend, as the trade war between Beijing and Washington continues to expand into a technology conflict,” an article in the South China Morning Post said. Trade wars have been a major market mover for Chinese equities and if investors can look past the news headlines to zero in on value, China-focused ETFs like the Direxion Daily CSI China Internet Index Bull 2X Shares (NYSEArca: CWEB) could be a double-down play as the shift from U.S. equities becomes more apparent heading deeper into the late market cycle.
While the Securities and Exchange Commission (SEC) is still keeping a cryptocurrency-based exchange-traded fund (ETF) from debuting on a major U.S. exchange, over 7,000 miles away, China is looking to launch its own global cryptocurrency.
While the Securities and Exchange Commission (SEC) is still keeping a cryptocurrency-based exchange-traded fund (ETF) from debuting on a major U.S. exchange, over 7,000 miles away, China is looking to launch its own global cryptocurrency. According to a CNBC report, the second largest economy “announced earlier this year that it was working on a digital currency backed by the yuan, reportedly inspired by Facebook’s announcement. “China has been incredibly strategic about how they think about cryptocurrency,” said Brad Garlinghouse, CEO of Ripple.
According to the latest International Monetary Fund (IMF) projections, China’s GDP output will fall 2% percent in the near term due to the latest trade war with the United States and 1 percent in the long term. “To rejuvenate growth policymakers must undo the trade barriers put in place with durable agreements, rein in geopolitical tensions and reduce domestic policy uncertainty,” said IMF Chief Economist Gita Gopinath. “Further escalation of trade tensions and associated increases in policy uncertainty could weaken growth relative to the baseline projection.” New IMF Chief Says Global Economy Is in a Synchronized Slowdown China Tech to the Rescue?
Whether a positive trade deal results or not, China will continue with its ever-expanding technology initiatives, which bodes well for tech-focused exchange-traded funds (ETFs). “Social commerce is all about online shopping and sharing and prizes and games,” said Fannin.
With a U.S.-China trade war still weighing in the balance for the capital markets, investors can forge on irrespective of trade negotiation results with China technology-focused exchange-traded funds (ETFs). Created in 2009 by the Shenzhen Stock Exchange, the ChiNext Board has been referred to as “China’s Nasdaq” for the innovative and growth-oriented Chinese firms it has attracted over the last decade. FTSE Russell compared performance for this Index, which was launched in 2017 as a way for global investors to track the performance of fast-growing ChiNext stocks listed on the Shenzhen Stock Exchange, relative to the FTSE China A Index and the FTSE China Index.
China country-specific ETFs strengthened Monday as Beijing revealed measures to bolster its economy and after President Donald Trump said the two countries were talking again. China tech-heavy ETFs were ...
The ongoing trade war saga between the U.S. and China will resume in Washington on September after both sides entered into recent discussions. Investors who want to get in on the action with Chinese equities ...
A key battle line has been drawn and crossed at China's Alibaba Group (NYSE:BABA). And for technical-based investors it's time to enjoy the benefits of capitalism, courtesy of a long position in Alibaba stock. Let me explain.Source: Shutterstock Keeping the faith in Alibaba stock hasn't always been easy. And it probably goes without saying that investors need look no further than the ongoing trade war between the U.S. and China as a reason to question a long position in BABA stock. But respectfully, it's time to turn your attention elsewhere.The fact is Alibaba stock has and continues to best investors' concerns regarding the trade war. This past May's easy earnings beat, with its solid revenue and margin growth, was proof of that as InvestorPlace's Luke Lango recently noted.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet shares of Alibaba and a company many rightfully view as China's answer to Amazon (NASDAQ:AMZN) weren't exactly quick to react enthusiastically to the quarterly confessional. In fact, BABA stock went down hard in the report's aftermath. So, what went wrong? * 7 Oversold Stocks To Buy Right Now A still-pending G-20 summit back in June certainly played a part in putting a lid on Alibaba's earnings. BABA's announced capital raise of approximately $20 billion via a Hong Kong shares listing has also been a point of contention. Alibaba stock bears who've long shouted about what they see as the diversified tech giant's accounting shenanigans see the move as the latest evidence of financial trickery.Nevertheless, in the face of constant headline harassment, BABA stock has moved higher.Alibaba stock is up roughly 27% year-to-date. Not only does the performance dwarf the 14% return of Invesco China Technology ETF (NYSEARCA:CQQQ) -- where the shares are the second-biggest holding, at 9.49% of the 91-stock portfolio -- it's also leading the U.S. bellwether S&P 500 index's gain of around 20%.And guess what? BABA isn't finished. What's more, shares are in position right now to make your portfolio great again or even better with Alibaba stock in it. Alibaba Stock Weekly ChartThe week is starting off on a slightly pressured note for the markets and Alibaba stock. But the noise is offering investors an opportunity to buy shares on weakness within a much stronger-looking weekly chart poised for continued upside.This past week Alibaba stock decisively reaffirmed the bull case after powering back above its year-long corrective base's 50% retracement level and mostly matching pre-earnings price for a second time. In our technical determination, it's a key battle-line won by BABA bulls following June's confirmed higher low pattern which set the stage for a constructive uptrend to emerge. * 7 Stocks to Sell This Summer Earnings Season Investors interested in going long Alibaba could always wait for additional price confirmation. I get it, but I also favor owning shares right here. With BABA marginally past this hotly contested technical zone and stochastics looking supportive after a near bearish crossover, conditions are ripe for a rally to the early May pivot high of $195.72 within the base.With shares trading near $176 there's roughly $20 of upside in Alibaba stock before I'd recommend taking partial profits. This compares nicely to the discussed battle line around the $170 level which bulls have overcome for a second time and a price obviously well-suited for a stop-loss if required.Allowing for a bit of wiggle room, an exit beneath $169 means the initial reward potential on going long Alibaba stock is nearly three times as great as the risk. That's attractive of course. But in appreciating a large corrective base showing more and more evidence of the right stuff for even bigger longer-term success, BABA is looking even better for making your portfolio great again or simply better than otherwise.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Semiconductor Stocks to Buy for Your Inner Geek * 7 Stocks to Buy That Save You Money * 4 Stocks to Sell Now The post Why Alibaba Stock Makes Even More Sense to Buy Today appeared first on InvestorPlace.
Although the trade war between the U.S. and China has dragged on, shares of Chinese e-commerce juggernaut Alibaba (NYSE:BABA) have largely shrugged off those trade tensions in 2019. So far this year, Alibaba stock is up nearly 30%, versus a roughly 20% gain for the S&P 500 and an approximately 14% gain for the Invesco China Technology ETF (NYSEARCA:CQQQ).There are three main reasons for the outperformance of Alibaba stock in 2019. First, the consumer side of China's economy has shown signs of stabilizing and improving in 2019. Second, Alibaba's revenue growth trends have remained resilient (BABA generated 50%-plus revenue growth again last quarter). Third, its margin trends have improved sequentially for the past three quarters.Source: Shutterstock Those three factors have driven the huge outperformance of BABA stock through the first seven months of 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Sell This Summer Earnings Season For five major reasons, this outperformance will persist for the last five months of 2019, too. Those five big reasons are as follows: China's Consumer Economy Is in Rebound ModeAs goes China's consumer economy, so goes Alibaba, since Alibaba's main businesses focus on selling goods to hundreds of millions of Chinese shoppers. Fortunately for the owners of Alibaba stock, China's consumer economy has been on a steady upward trend in 2019.In the first quarter of 2019, overall retail sales in China rose 8.3%. In the second quarter, they climbed more than 8.5%, including a 9.8% gain in June, the highest retail sales growth rate China has recorded since January 2018. Further, and more importantly for BABA stock, China's online retail sales growth accelerated from 15.3% in the first quarter to 17.8% in the first half of 2019.The economic data indicates that China's consumer economy materially improved over the past three months , especially on the digital front. As a result, Alibaba is well-positioned to report healthy quarterly numbers at the end of August. Those good numbers should provide support for continued gains by BABA stock. Alibaba Is Adding New Revenue StreamsIt's no secret that Alibaba's core commerce business is slowing, mostly because the growth of China's online retail market is slowing as the market gets bigger and more mature.But Alibaba is now doing something to offset that trend. Specifically, much like Amazon (NASDAQ:AMZN) is doing in the United States, Alibaba is creating tangential businesses that will produce new revenue streams.At the moment,Alibaba is focusing on selling consumer data to merchants. That business has healthy, long-term potential. We are entering the era of data-driven decision making. Alibaba has an unparalleled amount of data on China's consumers. That data will only become more and more valuable as data-driven decision-making becomes more prevalent. As a result, Alibaba's data selling business is likely to grow rapidly for the next several years.But that is just the tip of the iceberg. There are so many things which Alibaba can and will do to generate new revenue streams. Specifically, BABA can emulate the new things that Amazon is doing in America, like digital advertising, cloud, pharmacy, and logistics. As all these new revenue streams come online over the next few quarters for BABA, Alibaba's overall revenue growth trajectory will stabilize, and BABA stock will trend higher. Alibaba Is Going GlobalTo help it further combat slowing core e-commerce growth in mainland China, Alibaba is finally going global.Up until now, Alibaba's marketplace has been open to U.S. buyers but closed to U.S. sellers. Thus, while U.S. consumers could buy stuff from Chinese merchants on Alibaba, U.S. merchants couldn't sell products to Chinese consumers on Alibaba.That's all changing now. Alibaba recently began letting Americans sell products on the platform. BABA is charging Americans $2,000 to sell products on BABA's website, but that fee won't meaningfully lower demand because this is a unique opportunity for small and medium American merchants to increase their global addressable market by several fold.Consequently, over the next several quarters, a flurry of U.S. merchants will flock to Alibaba, and this rush of new sellers will provide a sizable tailwind to its revenues in the second half of calendar 2019. Margins Will Continue to ImproveDeclining profit margins have been a big problem for Alibaba for the past several years. The company has been investing a tremendous amount in new growth initiatives. Those investments come with hefty costs, and those hefty costs have eroded BABA's margins.A few years ago, BABA had 40%-plus net profit margins. Today, its net profit margins on a trailing-12-month basis are below 25%.But this margin compression trend appears to be in the process of reversing course. In fiscal 2018. BABA's net profit margin was 29.6%, down more than 3.6 percentage points from fiscal 2017. In the second quarter of fiscal 2019, BABA's profit margin for the trailing 12 months declined just 2.4 percentage points versus the previous year. In Q3 and Q4, the positive trend continued.Thus, the company's margin compression trend has significantly and consistently moderated over the past several quarters. This trend should persist for the foreseeable future.Alibaba's investments are finally starting to wind down, and the company's nascent hyper-growth businesses (like the cloud) are starting to grow meaningfully. They will continue to scale over the net few quarters, and that growth has the potential to raise the company's margins further, boosting Alibaba stock. Alibaba Stock Remains Attractively ValuedLast, but not least, Alibaba stock remains attractively valued.Relative to its history, Alibaba stock is pretty cheap at this point. Over the past five years, BABA stock's average forward earnings multiple has hovered around 29. Today, the forward earnings multiple sits around 26. Its sales, cash flow, and EBITDA multiples are also below their historical averages.Relative to its growth potential, Alibaba stock is also pretty cheap. According to YCharts, analysts, on average, expect Alibaba's long-term earnings growth to be roughly 22%. That seems conservative. My calculations indicate that the company's earnings growth rate will be closer to 25% over the long-term.Nonetheless, trading at 26 times its forward earnings, BABA stock has a price-earnings/growth (PEG) ratio of narrowly above one, which is really good in this market (the S&P 500 trades at a PEG ratio north of 1.2).Indeed, my calculations indicate that Alibaba stock's fundamentals will enable it to climb to $200 over the next few quarters. The Bottom Line on BABA StockAlthough the U.S.-China trade war has dragged on in 2019, BABA stock has shrugged off that noise, climbing 30% this year, thanks to increasingly favorable and improving core fundamentals. Those core fundamentals will continue to improve in the back half of 2019. As they do, BABA stock will continue to trend towards $200.As of this writing, Luke Lango was long BABA and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post 5 Reasons Alibaba Stock Could Rally Into the End of 2019 appeared first on InvestorPlace.
In two weeks, China will debut its Nasdaq-inspired board for technology companies developed domestically, which could put Chinese technology exchange-traded funds (ETFs) in play. U.S.-China trade negotiations may appear to be at a standstill, but that doesn't mean investors should sour their taste for Chinese equities, according to Lewis Kaufman, a portfolio manager at Artisan Partners. U.S. President Donald Trump and Chinese President Xi Jinping recently met at the G-20 summit in Japan, agreeing to hold back on further tariffs until the two largest economies can iron out a trade deal.
U.S.-China trade negotiations may appear to be at a standstill, but that doesn't mean investors should sour their taste for Chinese equities, according to Lewis Kaufman, a portfolio manager at Artisan Partners. “Regardless of what ultimately happens with the China trade tensions, there is a robustness to China that doesn’t exist anywhere else in the emerging markets,” said Kaufman. It’s very difficult to access domestic demand through the vehicles we would wish to use in so many emerging-market countries,” Kaufman added.