1 Green Flag and 1 Red Flag for Alibaba's Future

Alibaba (NYSE: BABA), one of the bellwethers of China's tech sector, lost roughly 50% of its market value over the past year as Chinese antitrust regulators probed and fined its e-commerce business. The regulators also imposed new restrictions on Alibaba's exclusive partnerships with merchants, promotional pricing strategies, data collection methods, and investments.

The decelerating growth of Alibaba's e-commerce business in the first half of fiscal 2022, which is expected to worsen throughout the rest of the year, indicated those restrictions were taking their toll. Moreover, the ongoing threat to delist U.S.-listed Chinese companies that don't comply with new U.S. auditing standards prevented value-seeking investors from buying the dip.

Image source: Alibaba.

Source Fool.com