BABA News Stock: Shares dip as BABA manager scandal rocks the company in China

NYSE:BABA fell by 0.58% on Monday despite China stocks continuing to bounce back.
BABA has fired a manager that was involved in a sexual assault scandal.
Despite its recent struggles, at least one institution is still bullish on AliBaba.

Stocks Reporter FXStreet

NYSE:BABA has had a 2021 to forget thus far, as the stock has lost 27% over the past six months and is down 14% overall year to date. On Monday, shares of BABA extended their decline as the Chinese tech conglomerate fell a further 0.58% to close the trading session at $195.25. Shares are trading well below both the key 50-day and 200-day moving averages, as the stock extends its plunge into bearish territory. Even on a day where most other Chinese stocks were rallying, Baba struggled to gain any sort of bullish momentum throughout the session.

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One of the reasons could be the recent sexual assault allegations against one of its high ranking managers that rocked the country. The scandal arose after an employee reported the incident against the manager along with external stakeholders following a heavy night of drinking. Female employees of the company banded together on Monday to protest ‘systemic inadequacies and a lack of protection for female employees’. Shares of BABA tumbled by over 4% on the Hong Kong Stock Exchange, and this poured over into the U.S. trading session.

BABA share price

Despite AliBaba’s recent struggles alongside its other Chinese tech peers, at least one institution remains bullish on the stock. Investment Management firm Fiduciary Management, a firm with over $13 billion in AUM, discussed AliBaba’s outlook in its recent shareholder letter. The firm reiterated its stance on Baba, a position it took beginning late last year. The letter cited that once the government crackdown has ended, Baba should continue to thrive, and that the firm is encouraged by Berkshire Hathaway’s Charlie Munger being a key investor in the company.

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Stocks Reporter

FXStreet

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