Alibaba (BABA) Down on US-China Trade Caution

We recently published a list of Investors Are Dumping These 10 Stocks. Alibaba Group Holding Limited (NYSE:BABA) is one of the worst-performing stocks on Thursday.

Alibaba dropped its share prices by 3.64 percent at intra-day trading on Thursday at $115.95 apiece, tracking an overall sluggish market sentiment, as investors traded cautiously despite a new trade deal between the US and China.

This came after reports that the trade talks focused only on rare earth minerals, with tariffs imposed on each other’s goods remaining in place.

Additionally, the new framework is still pending approval from Presidents Donald Trump and Xi Jinping.

The cautious sentiment spilled over to Chinese stocks, including Alibaba Group Holding Limited (NYSE:BABA), which was among the US-listed China-based firms feared to face potential delisting amid the two countries’ trade war.

In recent news, Alibaba Group Holding Limited (NYSE:BABA) reported a 279-percent jump in its net income attributable to shareholders in the first quarter of the year to 12.382 billion yuan from 3.270 billion yuan in the same period last year.

Revenues increased by 7 percent to 236.4 billion yuan from 221.87 billion yuan year-on-year.

While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None.