The information and analytics publication The Information reports the start of negotiations between the company’s management and representatives of the technology conglomerate Tencent Holdings Ltd. regarding potential participation in the second funding round of the startup DeepSeek, controlled by the hedge fund High-Flyer Capital Management. According to available data, the total investment volume is likely to reach 20.0 billion dollars, corresponding to the capital-raising targets announced earlier this year. Consultations are still at an early stage, but they may gain momentum amid the introduction of new solutions: DeepSeek recently presented an artificial intelligence (AI) model optimized for the chip architecture of Huawei Technologies Co., Ltd. This step significantly reduces its dependence on foreign investment, potentially strengthening the company’s negotiating position.
The financial report for the first quarter will be published on May 14: the consensus forecast assumes revenue of 247.20 billion yuan, above 236.45 billion yuan in the same period last year but below 284.84 billion yuan in the previous quarter, while earnings per share (EPS) are expected at 7.11 yuan compared with 5.17 yuan and 7.09 yuan, respectively, signaling continued operational efficiency. At the same time, the company’s dividend policy remains restrained. The latest extraordinary payment amounted to 1.98 yuan per share and was made on July 10, providing a yield of 1.66% per year, which exceeds the industry average of around 0.60%.
Support and Resistance Levels
Quotes are moving away from the upper boundary of the local descending channel of 145.00–116.00.
Technical indicators are showing an unstable sell signal: the EMA fluctuation range on the Alligator indicator is widening, while the AO histogram is forming new bars in the negative zone.
Support levels: 124.00, 104.00.
Resistance levels: 138.00, 155.00.
Alibaba Group Holdings Ltd. Trading Scenarios and Price Forecast
Short positions may be opened after the price consolidates below 124.00, with the target at 104.00 and stop-loss at 130.00. Time horizon: 7 days or more.
Long positions may be opened after the price consolidates above 138.00, with the target at 155.00. Stop-loss — 130.00.
Scenario
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 123.95 |
| Take Profit | 104.00 |
| Stop Loss | 130.00 |
| Key Levels | 104.00, 124.00, 138.00, 155.00 |
Alternative Scenario
| Recommendation | BUY STOP |
| Entry Point | 138.05 |
| Take Profit | 155.00 |
| Stop Loss | 130.00 |
| Key Levels | 104.00, 124.00, 138.00, 155.00 |
