China’s Tech Stocks Surge: What Top Investors Know That You Don’t

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Nasdaq 100 News

Alphabet Inc Class A,Baidu Inc,Amazon.Com Inc

Stocks Analysis by MarketBeat.com (Gabriel Osorio-Mazzilli) covering: Nasdaq 100, Alphabet Inc Class A, Baidu Inc, Amazon.com Inc. Read MarketBeat.com (Gabriel Osorio-Mazzilli)'s latest article on Investing.com

Wall Street mega investors have recently made Chinese stocks their home for billions, especially as the government takes new stimulus measures.

Even though the Chinese stock market has been scrutinized extensively in the past couple of years, some investors have begun to realize that there is much more upside than apparent risk for Asia’s powerhouse. China’s technology sector has the lowest valuation in history compared to its American counterpart.

after realizing the potential upside was no longer that attractive; it is no surprise to see his former mentor and boss George Soros initiate a $73.4 million position in Alibaba. Considering that Alibaba trades at less than a third of the $316 a share high it made after COVID-19, it makes sense for these investors to look at the potential risk-to-reward ratios and decide if it is worth taking a risk on Chinese stocks.Starting with Alibaba, analysts now justify a consensus price target of $107.6 a share on the stock, calling for 12.7% upside from where it trades today.

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