Alibaba Just Confirmed Investors' Worst Fears

Panic is never a great attitude to have in investing, but neither is blind optimism. So it's probably healthy for Alibaba (NYSE: BABA) shareholders not to get too overwhelmed by the ongoing Chinese regulatory crackdown, but also not blindly buy the stock just because it's down and other famous investors like Charlie Munger are doing so.

Alibaba released its third-quarter earnings report on Thursday, Nov. 18, and the stock plunged over 10% on the news. While the period did encompass a tumultuous summer for the Chinese economy, some figures did seem to confirm the worst fears over Alibaba's business.

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Source Fool.com