- 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.
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.
Stay up to speed with hot stocks' news!
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.
BABA stock price target
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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
GBP/USD consolidates above 1.2500, eyes on US PCE data
GBP/USD fluctuates at around 1.2500 in the European session on Friday following the three-day rebound. The PCE inflation data for March will be watched closely by market participants later in the day.
Gold clings to modest daily gains at around $2,350
Gold stays in positive territory at around $2,350 after closing in positive territory on Thursday. The benchmark 10-year US Treasury bond yield edges lower ahead of US PCE Price Index data, allowing XAU/USD to stretch higher.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.