- NYSE:BABA fell by 5.81% during Monday’s trading session.
- The Chinese anti-monopoly body looks to clamp down on Chinese tech.
- Goldman Sachs provides a glimmer of hope to investors with a new price target.
NYSE:BABA has certainly had a year to forget in 2021, as ongoing pressure from the Chinese government has hammered Chinese tech names to multi-year lows. Shares of BABA fell by 5.81% on Monday and closed the first trading day of the week at $115.00 even. The Christmas week kicked off with red, rather than green, as all three major indices tumbled once again. The Dow Jones fell a further 433 basis points, while the S&P 500 and the NASDAQ plummeted by 1.14% and 1.24% respectively. The beat down of popular growth names continued on Monday, as rising fears of the spread of the Omicron variant continued to rattle investors.
AliBaba is fresh off of its Investor Day event last week that outlined how AliBaba plans to regain the trust of its investors. Obviously investors were not convinced given the extended declines to start the week. Adding to the volatility of AliBaba was yet another announcement from the Chinese government on the ongoing crackdown of Chinese tech companies. The Anti-Monopoly Bureau of China stated that it would pursue further punishment for companies exhibiting anti-competitive tactics. This puts the focus squarely on China’s big-tech companies which includes AliBaba, so there could be more crackdowns on the way which should further deplete AliBaba’s stock heading into 2022.
Perhaps offering some solace to investors, investment bank Goldman Sachs provided an updated price target for Baba’s battered stock. The firm reiterated its Buy rating for AliBaba, shrugging off any ongoing regulatory concerns that the company could be facing heading into 2022. Goldman Sachs also provided an updated price target of $215 for Baba, which shows that it believes there is some positivity in store for AliBaba moving forward.
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