Hong Kong-listed shares of Alibaba saw an increase exceeding 4% on Monday, accompanied by a similar rise of nearly 4% in pre-market trading for its New York-listed American Depository Shares (ADRs). These gains occurred following a positive reassessment of the Chinese tech giant by analysts. Baird analysts upgraded their price target for Alibaba from $153 to $174, while Bank of America analysts adjusted their target from $168 to $195, both maintaining optimistic outlooks for the company.
This boost in confidence comes in the wake of Alibaba’s announcement to significantly increase its investment in AI beyond a prior commitment exceeding $50 billion. Additionally, Alibaba disclosed a collaboration with Nvidia to incorporate its AI development tools into software designed for robotics and autonomous vehicles, signaling further expansion in its tech capabilities.
In other market movements, AstraZeneca shares surged by 1.6% on the London market after the company revealed its intention to directly list shares on the New York Stock Exchange (NYSE). This strategic decision involves replacing its current ADR listing with a direct ordinary share listing. Despite this change, AstraZeneca assured stakeholders of its continued status as a UK-listed and headquartered firm, with ongoing listings in Stockholm.
Lale Akoner from eToro commented that AstraZeneca’s decision is aimed at widening its investor base in the US to support ambitious growth plans over the next decade. The dual listing is not seen as a departure from London but rather as an effort to accomplish a global foothold, essential for the firm’s projected sales growth, targeting $80 billion by 2030.
Elsewhere in the pharmaceutical sector, GSK witnessed a 3.6% rise in its shares, marking it as a top performer in the FTSE 100. The increase followed the announcement of CEO Emma Walmsley’s replacement by Luke Miels, effective January 1, indicating a strategic leadership transition.
This series of strategic decisions by key players in the market highlights ongoing efforts to expand global influence and invest in innovative technologies promising further growth and stability.