BABA Stock News: Alibaba Group Holding extends decline as gaming crackdown worsens

NYSE:BABA fell by 1.99% on Thursday as Chinese stocks continued to decline.
Chinese gaming regulations worsened and AliBaba rival Tencent is taking a plunge.
AliBaba is still making a variety of investments as it continues to diversify its portfolio.

Stocks Reporter FXStreet

NYSE:BABA investors may have been cheering for the rebound a little too prematurely last week as shares are now down for the big for the third straight session. On Thursday, AliBaba fell by a further 1.99% to close the trading session at $167.32. The Chinese eCommerce leader has now shed over 6.0% from its share price over the past week, and nearly 15.0% over the past month. Industry rivals JD.com (NASDAQ:JD) and PinDuoDuo (NASDAQ:PDD) were also trading lower on Thursday, while social media company Baidu (NASDAQ:BIDU) and ride-hailing firm DiDi (NYSE:DIDI) were both above water.

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The Chinese government crackdown on tech industries continues to get worse as the CCP now has its focus on gaming. The government is now going to slow down its approvals for new online game releases, while trying to prevent or at least limit how much these gaming firms can profit off of children. Shares of Tencent (TCEHY) were down 2.84% on Thursday, while shares of Tencent-backed Sea Limited (NYSE:SE) were down 6.17% on the news. Sea Limited also announced a $6 billion capital raise of ADSs and convertible notes.

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Despite the ongoing investigations and scandals, AliBaba continues to invest in startups and other companies to expand its portfolio. AliBaba’s logistics segment, Cainiao, invested in a last mile locker service for European customers of its eCommerce platforms. Rather than wait around for drivers, customers can now go pick up their packages at their leisure, which reduces the carbon footprint of the process. AliBaba also invested in Vietnamese food chain HomeFarm, as the company continues to reach further into the Southeast Asian market.

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Stocks Reporter

FXStreet

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