Why Alibaba Stock Wilted on Wednesday
's (NYSE: BABA) stock was not a winning bet on Wednesday, although this wasn't really the Chinese company's fault. A media report about possible export restrictions from the U.S., which could potentially stunt the tech giant's growth in a hot segment, helped push the share price down. By the end of the trading day, Alibaba's stock was down by nearly 3%.
Earlier that day, Reuters published a report stating that the Biden administration is contemplating a tightening of export controls on advanced processors. Such processors are essential to artificial intelligence (AI) applications.
Citing an unidentified "two people familiar with the matter," the news agency said that this would take the form of new restrictions in the currently existing set of limits imposed by the federal government.
Source Fool.com
Alibaba Group Holding Ltd ADR Stock
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With a target price of 109 € there is a positive potential of 49.52% for Alibaba Group Holding Ltd ADR compared to the current price of 72.9 €.
