Why Alibaba Was Down Today
Shares of Alibaba Group (NYSE: BABA) moved higher in pre-market trading on Thursday after news broke that Chinese regulators may be ready to let the e-commerce giant revive its plans to hold an initial public offering for its financial services affiliate, Ant Group.
Despite that positive news, it seems that some investors took the early pop as an opportunity to sell. The stock was down 5.7% as of 2:16 p.m. ET on Thursday. However, there could be substantial upside in Alibaba as investors warm up to Chinese tech stocks again.
Alibaba's share price has plunged over the past year as the government in Beijing has put China's biggest tech players under intense scrutiny. And the Securities and Exchange Commission's (SEC) threats to delist Chinese stocks from U.S. markets if they don't comply with U.S. auditing rules have been further contributing to the downward pressure. In early May, the SEC added over 80 companies to the list of those at risk of delisting under the Holding Foreign Companies Accountable Act, which was signed into law in 2020.
Source Fool.com
