China is on its way to recovering from the Wuhan virus and we expect economic activity to pick up. While the USA faces the Chinese virus head on, it's best for investors to focus on plays that won't be affected by what's happening in the US. BABA will benefit and the stock will head back to where it was trading at before. With Softbank selling some of its position, it also removes an overhang on the stock.
On March 10th, Alibaba (NYSE:BABA) reported that its package and meal delivery units are fully staffed at pre-coronavirus levels, "the latest example of how China’s largest corporations are getting back to work after Beijing’s entreaty to safeguard economic growth," Bloomberg writes.
Cainiao, meal delivery unit Eli.me and grocery chain Freshippo are all back at full strength, according to a spokesperson.
Cainiao, of which BABA owns 60%, boasts a network of millions of delivery people that can handle more than a billion packages daily during peak demand.
Last week, Alibaba rival JD.com (NASDAQ:JD) forecast at least 10% revenue growth this quarter, suggesting surprising resilience in online retail.
Yesterday, billionaire David Tepper said that he believes the market could go down another 10%-15%. At the moment, he is "nibbling" on tech faves like Amazon (NASDAQ:AMZN), Google (GOOG, GOOGL), Alibaba (NYSE:BABA), and Micron (NASDAQ:MU).
As always, trade with caution and good luck to all!