After nearly a month of a stunning rally, Alibaba’s (BABA) uptrend broke down in a hurry. The stock had double-bottomed at $67.50 late last month. After the Chinese e-commerce firm posted quarterly results, the stock peaked briefly at over $90. The short-lived rise proved a bearish sign.
BABA stock closed at $80.80 after the company copied JD.com’s (JD) convertible debt offering worth $4.5 billion. The cash raised from the debt is contradictory to its stock buyback and dividend payment. The cheap lending rate of 0.25% interest is the only advantage of the issuance.
In the drugstore sector, Walgreens (WBA) followed the sell-off in CVS Health (CVS) from weeks ago. The stock fell by around 6% on Wednesday and another 3.16% on Thursday. At $15.95, WBA stock has not traded this low since 1998. News it sold shares of Cencora (COR) to raise $400 million failed to lift the stock.
Walgreens decreased its COR stock holding from 13% to around 12%.
In the Chinese EV sector, NIO lost 8.4%. It risks re-testing the $3.61 low for the year.
Boeing (BA) troubles continue to mount. BA stock fell by 7.55% after the CFO said that plane output in Q2 is not likely to rise from Q1 levels. Aerospace investors should continue to avoid BA shares.
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