BABA Stock News: Alibaba Group drops again as Chinese ADRs pull back yet again

NYSE:BABA fell by 1.66% during Tuesday’s trading session.
Chinese tech stocks fall following Prosus selling stake in Tencent.
AliBaba becomes the first company in China to test driverless delivery trucks.

Stocks Reporter FXStreet

NYSE:BABA dipped lower on Tuesday in what was a weaker day overall for growth sectors and Chinese ADR stocks. Shares of BABA fell by a further 1.66% and closed the trading session at $116.76. Last week’s stock gains seem like a distant memory now after two straight losing days to start the last week of the first half of 2022. All three major indices dropped lower again on Tuesday, as investors weighed rising recession fears and aggressive rate hikes to try and tame inflation in the US economy. The Dow Jones sank by 491 basis points, the S&P 500 dropped by 2.01%, and the NASDAQ tumbled by 2.98% during the session.

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Following the announcement from Prosus NV that it would be selling off a major part of its stake in Tencent, Chinese tech stocks fell in both Asian and US trading. Other ADRs on the decline on Tuesday include JD.Com (NASDAQ:JD), PinDuoDuo (NASDAQ:PDD), and Chinese EV maker Nio (NYSE:NIO). While the former two stocks were selling off due to the downward pressure on the sector, Nio was slapped with a bearish short report from Grizzly Research. The report alleges that the company has been inflating its sales and income numbers by overselling swappable batteries to its business partner. Shares of Nio were down by 2.66% ahead of its June delivery numbers report.

Alibaba stock forecast

In other AliBaba news, the company became the first Chinese business to be approved to test driverless delivery trucks on Chinese streets. The trucks have had a backup driver there if needed, and will begin testing in the Eastern Zhejiang Province. AliBaba now has permission to move on to true driverless trucks, with a human monitor in the passenger seat observing the process.

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Stocks Reporter

FXStreet

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