“We don’t see the December lockup expiration as a significant headwind for Alibaba,” Max Wolff, chief economist at Manhattan Venture Partners, said in the Bloomberg article. “March and September are the ones to watch.”
Nevertheless, the investment thesis for the Chinese online retailer remains sound. Consumer spending could still climb as a new emerging middle-class takes shape in China and the country shifts from a export-oriented economic model to domestic consumption.
Alibaba stock has been weakening since the November highs. However, BABA is settling into a healthy consolidation phase that could turn into a bull flag pattern, writes Serge Berger for InvestorPlace. Additionally, BABA recently broke out of a diagonal resistance line from the November highs.
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Max Chen contributed to this article.