Why Alibaba Stock Just Popped 6%
Shares of Alibaba Group Holding Limited (NYSE: BABA) are bouncing back today from a historical sell-off that's seen the Chinese e-commerce titan's stock lose 30% of its value in just two months. As of 10:55 a.m. EST, Alibaba shares are up 6% off of yesterday's multi-month low.
Suffice it to say that this is a curious development on a day when The Wall Street Journal just reported "regulatory risks" were extending a "Christmas Eve selloff" at Alibaba, and described how the canceling of a planned IPO of Alibaba's Ant Group subsidiary and an antimonopoly investigation in China have combined to cost Alibaba $273 billion worth of market cap in just a couple of months. Citing analysts, the Journal warned that pressure is "intensifying" on both Alibaba and on Ant, and that regulators have instructed the latter "to refocus its attention on its original payments business" and stop expanding into new -- and more profitable -- business areas such as loan origination.
That being said, even the Journal admits that investors may be overreacting to regulatory fears, and that "it isn't in China's interest to break up, or destroy such a profitable enterprise."
Source Fool.com