Stifel cuts Alibaba, JD price targets on revenue growth issues
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Alibaba (NYSE:BABA) and JD.com (NASDAQ:JD) took the spotlight among Chinese Internet stocks on Wednesday after Stifel analyst Scott Devitt trimmed his price targets on the digital media and e-commerce leaders.
Devitt took down his estimates for Alibaba's (BABA) stock to $150 a share from $170, and lowered his view on JD.com (JD) to $95 a share from $110, but left his buy ratings on both companies in place. Devitt said that he expects Alibaba (BABA) and JD (JD) to report slowing revenue growth when the companies report their fourth-quarter results due to what he called difficult year-over-year revenue comparisons and several "headwinds" affecting the Chinese Internet market.

"Weakening Chinese consumer demand, global supply chain constraints and Covid-related restrictions" are dragging on the Chinese e-commerce industry, Devitt said, adding that industry data for the final three months of 2021 "has shown a decline in discretionary goods, which will be reflected in slower marketplace growth."
As trading progressed, Alibaba (BABA) shares pulled back by 2.5%, while JD (JD) edged into positive territory and was up by 0.6%.
Among other notable Chinese companies, Weibo (NASDAQ:WB) shares were off by 1%, Baidu (NASDAQ:BIDU) was at its breakeven point, Tencent Holdings (OTCPK:TCEHY) rose almost 1% and DiDi Global (NYSE:DIDI) fell more than 4%.
Earlier Wednesday, the Financial Times reported that several international banks have expressed concerns to Chinese authorities about new rules around Chinese companies listing their shares on overseas stock markets.