Alibaba dips on MS downgrade as PDD grabs spot of most valuable Chinese e-commerce firm
Chinese e-commerce firm.
Alibaba's U.S. shares slipped 1.5% to $73.7 in premarket trading, tracking a fresh one-year low.
They are down 14% since the company posted in line second-quarter revenue and scrapped plans to spin off its cloud business.
Meanwhile, shares of PDD Holdings have surged following stellar quarterly results from the Temu parent this week.
The company closed with a market capitalization of nearly $196 billion on Thursday, surpassing Alibaba's market value of $190.45 billion.
Morgan Stanley analysts downgraded Alibaba to «equal-weight» from «overweight», flagging concerns over softness in its customer management revenue and cloud business due to sagging economic recovery in China.
They also noted uncertainties from the decision to scrap the spin-off of its cloud business.
The brokerage cut its price target on the stock to $90 from $110, the second lowest on Wall Street, as per LSEG data.
Alibaba's U.S.
