Shares of the Chinese e-commerce giant dived as much as 3.9% on Thursday, the biggest retreat in 10 days according to Bloomberg data. Shares dropped about 1% on Friday. The sell-off has been fed by disappointing Chinese retail sales, which rose 10.2% from the prior year in November vs. analyst estimates for a 10.3% pop. Alibaba's stock is down about 11% since it hit an all-time high Nov. 24.
The stock's pullback may be a rare buying opportunity into a company with an increasing presence in many hot industries such as artificial intelligence and grocery shopping. It also helps to have the charismatic, big-thinking Jack Ma leading the ship.
Points out Needham analyst Kerry Rice, "With 500 million plus annual active consumers on Alibaba's platforms consuming content and conducting transactions, the company is able to garner significant intelligence about customers. Leveraging these data insights, Alibaba can enhance the consumer experience by providing products, services, and content that are personalized to each consumers' preferences.
Rice added, "Ultimately, management expects the higher consumer engagement to drive traffic growth and raise conversion, compelling merchants and brands to allocate more of their marketing spend to Alibaba's platforms."
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