Shares in Chinese e-commerce giant Alibaba (BABA) were stronger today as Americans flocked to it for bargains amid concerns over rising prices.
Top Shopping App
According to Chinese media outlet wallstreetcn.com, Alibaba.com, the e-commerce giant’s business-facing shopping platform, became the top shopping app on the iOS app store in the U.S. at one point on Wednesday.
Data from analytics platform Sensor Tower showed that the Alibaba.com mobile app took the third spot on the U.S. iOS app store’s shopping category for most of this week, having climbed from 18th place a month ago.
It wasn’t just Alibaba on the march today. Sensor Tower data also showed that fellow Chinese shopping platforms DHgate, Shein and Temu were among the top 10 rankings for shopping apps on both iOS and the Google Play store.
Taobao, also owned by Alibaba, dropped to 32nd place on iOS on Wednesday from its lofty position of last week.
Concerned U.S. Shoppers
According to a report in the South China Morning Post, the increasing popularity of Chinese shopping apps comes after video clips of local manufacturers promoting cheap made-in-China luxury goods went viral on TikTok earlier this month.
The merchants hope to appeal to U.S. shoppers concerned about the impact of President Donald Trump’s global tariffs on consumer prices. Indeed, the fear is that the tariffs will become a “consumer tax” as both manufacturers and retailers pass down the extra costs on to the ordinary man and woman on the street.
The fear is that even Chinese platforms won’t stay low-cost for long with Shein and Temu, owned by PDD (PDD), already warning that they will raise their prices later this month. Temu, has also suspended its advertiser spending with U.S. social media giants such as Alphabet-owned Google (GOOGL) and Meta Platforms (META).
Is BABA a Good Stock to Buy Now?
On TipRanks BABA has a Strong Buy consensus based on 16 Buy ratings. Its highest price target is $190. BABA stock’s consensus price target is $167.13 implying an 39.96% upside.
