BABA Stock Price: Alibaba tumbles on rumor of potential Softbank stock sale

NYSE:BABA fell by 6.05% during Monday’s trading session.
Citibank reports that Softbank could be looking to unload some of its 5 billion shares of BABA stock.
AliBaba issues commemorative NFTs for the Beijing Olympic Games.

Stocks Reporter FXStreet

NYSE:BABA looked to finally be righting the ship after a dismal 2021 sent the stock of the Chinese tech giant to multi-year lows. On Monday, a report from Citibank stopped that turnaround dead in its tracks. Shares fell by 6.05% and closed the first trading day of the week at $114.82. Until now, AliBaba’s stock had been in positive territory so far in 2022, but shares are now down about 4.6% after the recent tumble. AliBaba fell alongside the broader markets on Monday, as big tech weakness dragged down the NASDAQ and the S&P 500, as both indices started the week in the red.

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Why were shares of AliBaba trading lower on Monday? A Citibank report released in the morning suggested that Softbank is preparing to sell a significant position in its stake in AliBaba. The Japanese tech company is the single largest stakeholder in AliBaba with a 24.8% stake in the company. This is the equivalent of about 5.4 billion shares of BABA. As if AliBaba’s stock could afford any more bad news, the threat of being sold by its largest shareholder will certainly add more downward pressure if the report turns out to be true.

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In other AliBaba news, the company is getting into the NFT market with some commemorative and non-tradable tokens made specifically for the Beijing Winter Olympic Games. They will be sold exclusively on the platforms owned by AliBaba which include Taobao and TMall. These collectibles will only be available to citizens of Mainland China who are aged 14 years or older.

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Stocks Reporter

FXStreet

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