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Big Pension Exits Alibaba, Buys Quantum Stocks D-Wave, Rigetti, IonQ - Barron's

1. New Jersey pension sold all Alibaba shares, investing in quantum computing instead. 2. Alibaba ADRs rose 34% in H1 2025, outperforming the S&P 500. 3. D-Wave and Rigetti received significant investments; strong revenue but increased losses reported. 4. Alibaba missed earnings estimates in May after strong Q1 results in February. 5. Market is optimistic about quantum technologies despite mixed sentiments from companies involved.

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FAQ

Why Bearish?

The exit from Alibaba by a major investor indicates diminishing confidence, reminiscent of past declines in tech valuation in 2022. Market response to selling pressure from institutions often leads to further price drops.

How important is it?

The selling of Alibaba shares by a large fund indicates a shift in investor sentiment towards Chinese tech stocks, which may foreshadow broader market behavior affecting 9988.

Why Short Term?

The swift exit by a significant pension fund points to immediate loss of confidence that can influence market sentiment for the near future, akin to similar events impacting tech stocks rapidly.

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