Alibaba: Is the Worst Over Now?
Shares of Alibaba (NYSE: BABA) were flying higher on Monday after the company received a $2.8 billion fine from China's anti-monopoly regulator, the State Administration for Market Supervision (SAMR).
It might seem strange for the Chinese e-commerce stock to jump on the news, climbing as much as 9%, since the announcement had the reverse of a buy-the-rumor/sell-the-news effect. But that's because investors had been fearing the threat of a fine from SAMR since December when the agency first announced an investigation into Alibaba.
That news caused Alibaba shares to plunge 13% on Dec. 24, wiping out $100 billion in the stock's market value, though today Alibaba recouped more than half of those losses.
Source Fool.com
