Alibaba stock was climbing Monday after reports that the Chinese internet retailer was set to raise fees.
The company’s American depositary receipts jumped 3.4% to $79.14 just after the market opened. Coming into the session, the shares had lost more than 25% over the past 12 months. They have gained more than 9% in the past month.
Alibaba…
stock was climbing Monday after reports that the Chinese internet retailer was set to raise fees.
The company’s American depositary receipts jumped 3.4% to $79.14 just after the market opened. Coming into the session, the shares had lost more than 25% over the past 12 months. They have gained more than 9% in the past month.
Alibaba has been hurt by China’s slump in consumer spending and sluggish recovery from Covid-19 era lockdowns. A property market meltdown has also made it harder to revive confidence in the economic outlook. This month, China’s central bank lowered two key interest rates to revive growth.
Alibaba will increase merchant fees, the source of most of its revenue, Bloomberg reported on Monday. The policy change was sent to clients last week, the report said, citing people familiar with the matter. Alibaba didn’t immediately respond to a Barron’s request for comment on Monday.
The move would be “a positive development,” Citi analysts led by Alicia Yap wrote in a note adding that the ability make more money would improve along with an extra push on traffic to “support those merchants.”
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Alibaba’s Hong Kong shares closed 4.7% higher on Monday. The Hang Seng Index added 1.3%.
Write to Brian Swint at [email protected]
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Source Link: https://www.barrons.com/amp/articles/alibaba-stock-price-today-fees-d59e3ce8
Alibaba Stock Is Rising. It May Start Charging Merchants More.:
Alibaba stock was climbing Monday after reports that the Chinese internet retailer was set…
