BABA Stock News: Shares extend dip as broader Chinese tech weakness continues

NYSE:BABA fell by 0.44% on Wednesday despite opening the session in the green.
AliBaba is criticized by China’s top anti-corruption agency for the recent scandal.
The global eCommerce industry heats up as Amazon hits back at AliBaba.

Stocks Reporter FXStreet

NYSE:BABA looked like it was going to ride higher on Wednesday, but general tech weakness and a pull back by Chinese stocks left AliBaba in the red by the closing bell. Shares of BABA fell by 0.44% on Wednesday, closing the trading session at $194.86. It was another day where cyclical and value stocks outperformed growth and tech sectors, as the U.S. infrastructure bill takes another step towards being finalized. AliBaba has been mired in controversy as of late, and a less than stellar second quarter earnings report has also soured investors.

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One of those controversies is the sexual assault allegations that came out yesterday against a senior manager with the company. Today, China’s top anti-corruption agency, China’s Central Commission for Discipline Inspection blasted AliBaba for its toxic drinking behavior. The agency called the behavior ‘disgusting’. The allegations have stirred up backlash within the country about the treatment of female employees as well as the unspoken rules of coerced drinking. AliBaba now faces the wrath of the #MeToo movement, as well as the ongoing investigations by other agencies of the Chinese Government. Needless to say, the company has seen better days.

BABA share price

On the business side of things, AliBaba’s challenge to Amazon (NASDAQ:AMZN) for global eCOmmerce supremacy was answered today. In July, AliBaba announced it would be introducing global 72 hour delivery from its eCommerce platforms. Today, Amazon announced the opening of its Amazon Air Hub operations at the Cincinnati/Northern Kentucky International Airport. Amazon opened a new 800,000 square foot fulfillment center, as well as announced the plans for a 630,000 square foot one in Florida opening in 2022, that will dramatically increase Amazon’s last-mile delivery network.

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Stocks Reporter

FXStreet

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