With Trump back in office, we’re seeing renewed tension in U.S.-China trade relations. Trump’s team is expected to restrict certain Chinese goods, which could pressure Chinese markets in the short term. In response, China has hinted at ramping up its economic stimulus by 10-20%, cushioning companies like Alibaba.
In the immediate term, Alibaba might see a dip toward $80 as markets adjust. However, if China rolls out its stimulus plans, we could see Alibaba push up to the $120 range. The holiday season might amplify these shifts, given higher retail demand.
Bottom Line: Keep an eye on trade announcements and China’s next economic moves. Timing here is key, and these actions could make Alibaba one of the more interesting plays this season.
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