1 Green Flag for Alibaba in 2023, and 1 Red Flag
Alibaba (NYSE: BABA), which owns the largest e-commerce and cloud platforms in China, was once considered a solid growth stock. But over the past two years, its stock was crushed as the company dealt with: An antitrust probe, which resulted in a record $2.8 billion fine and tighter e-commerce restrictions; the slowdown of the Chinese economy, which was exacerbated by the country's draconian "zero-COVID" shutdowns; and delisting threats amid escalating tensions between the U.S. and China.
Last month, Xi Jinping's confirmation to an unprecedented third term as the general secretary of the Chinese Communist Party -- which suggests most of those headwinds will persist -- drove Alibaba's stock even lower. As a result, Alibaba's stock now trades nearly 80% below its all-time high and hovers just slightly above its IPO price of $68 a share from September 2014.
Image source: Alibaba.
Source Fool.com
