Alibaba Stock News: BABA down as US probes Alibaba cloud business for national security risks
Premium|Take advantage of 50% OFF on your first month.
50% OFF and access to ALL our articles and insights.
You have reached your limit of 5 free articles for this month.
Take advantage of the Special Price just for today!
50% OFF and access to ALL our articles and insights.
Subscribe to Premium- Alibaba stock drops to near $125.50 in premarket.
- BABA stock down 4.6% in premarket.
- Biden administration says it wants to ensure that US user data not compromised.
Alibaba (BABA) shares slumped in Tuesday's premarket after Reuters released a story saying that the Biden administration is probing the ecommerce giant's cloud business. Shares dropped by 4.6% to $125.50 at the time of writing.
Alibaba Stock News: a dark cloud
The Reuters report says that the Biden administration began the probe shortly after the current president took office.
"The focus of the probe is on how the company stores U.S. clients' data, including personal information and intellectual property, and whether the Chinese government could gain access to it." the article says. Although the cloud business is one of the most talked about features of Alibaba's portfolio of companies, the unit does about $50 million worth of sales in the US – making it tiny in comparison to Amazon Web Services or Microsoft's Azure.
BABA key statistics
| Market Cap | $360 billion |
| Price/Earnings | 18 |
| Price/Sales | 3 |
| Price/Book | 2 |
| Enterprise Value | $289 billion |
| Operating Margin | 13% |
| Profit Margin |
15% |
| 52-week high | $274.29 |
| 52-week low | $108.70 |
| Short Interest | 2% |
| Average Wall Street Rating and Price Target | Buy, $207.42 |
Alibaba Stock Forecast: BABA must hold $123
BABA shares have dropped to the mid-$120s on the news. It is imperative if Alibaba stock is going to continue its recent momentum that shares remain elevated abot $123. This is near where BABA shares closed on December 21 and 30. Additionally, this price coincides with 21-day moving average, which sits just above.
If BABA breaks $123, then support exists at $118 and around $110. On the upside, BABA needs to first break the 9-day moving average before setting its sights on the January high of $138.63.
BABA 1-day chart
The author owns shares in Alibaba.
Like this article? Help us with some feedback by answering this survey:
- Alibaba stock drops to near $125.50 in premarket.
- BABA stock down 4.6% in premarket.
- Biden administration says it wants to ensure that US user data not compromised.
Alibaba (BABA) shares slumped in Tuesday's premarket after Reuters released a story saying that the Biden administration is probing the ecommerce giant's cloud business. Shares dropped by 4.6% to $125.50 at the time of writing.
Alibaba Stock News: a dark cloud
The Reuters report says that the Biden administration began the probe shortly after the current president took office.
"The focus of the probe is on how the company stores U.S. clients' data, including personal information and intellectual property, and whether the Chinese government could gain access to it." the article says. Although the cloud business is one of the most talked about features of Alibaba's portfolio of companies, the unit does about $50 million worth of sales in the US – making it tiny in comparison to Amazon Web Services or Microsoft's Azure.
BABA key statistics
| Market Cap | $360 billion |
| Price/Earnings | 18 |
| Price/Sales | 3 |
| Price/Book | 2 |
| Enterprise Value | $289 billion |
| Operating Margin | 13% |
| Profit Margin |
15% |
| 52-week high | $274.29 |
| 52-week low | $108.70 |
| Short Interest | 2% |
| Average Wall Street Rating and Price Target | Buy, $207.42 |
Alibaba Stock Forecast: BABA must hold $123
BABA shares have dropped to the mid-$120s on the news. It is imperative if Alibaba stock is going to continue its recent momentum that shares remain elevated abot $123. This is near where BABA shares closed on December 21 and 30. Additionally, this price coincides with 21-day moving average, which sits just above.
If BABA breaks $123, then support exists at $118 and around $110. On the upside, BABA needs to first break the 9-day moving average before setting its sights on the January high of $138.63.
BABA 1-day chart
The author owns shares in Alibaba.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.