Tech Giant Alibaba has Reportedly Experienced a Stock Price Slump
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Just recently, Alibaba Group has reported a slump in its share prices. Alibaba is one of the major tech giants from China that is listed on the United States Stock Exchange. The company has revealed that the share price slump it has experienced is a 28-month low. The company reportedly experienced a slump on Friday, September 24, 2021.
Alibaba Group has experienced a slump due to the recent crackdown that has been carried out by the regulatory authorities from China. Since the beginning of 2021, the Chinese regulators have become very active against the corporate companies in the country.
The China-based companies that are mainly enlisted on the US Stock Markets are the ones on the hit list of the Chinese regulators. The regulators are targeting such companies on the basis of two major factors.
The first factor is the flow of information, where the regulators have implemented stricter regulations for the protection of the customer protection. The second factor is antitrust where such companies are involved in killing any competition in the country of operations.
Therefore, the regulatory authorities are now carrying out their crackdown against such companies and Alibaba is among them. It was in the earlier months of 2021 when Alibaba had to pay over a $2 billion fine for breaching the antitrust law.
This is the reason why the company is now facing issues that are causing a drop in its share prices. Now, the company is trying to bring itself out of trouble and cover the losses. The first strategy Alibaba has adopted is to sell its stocks in the media channels.
Therefore, the company has recently gone ahead and sold its entire 5.01% stake in the Mango Excellent Media Company. This announcement in regards to the selling of the stakes was made by Alibaba on Thursday, September 23, 2021. Alibaba had just acquired a stake in the particular media channel back in December of 2020. However, the company has proceeded with selling its stake in the channel within 12 months of its acquisition.
The regulators are constantly targeting and scrutinizing the corporate profits of companies such as Alibaba. This is causing a lot of trust issues and giving birth to uncertainties among the investors. Due to these issues, the investors have started backing out and have changed their sentiments towards investing in Alibaba shares.
At present, even Jack Ma is finding himself in trouble, which is why the billionaire has been away from the public eye for such a long time. After disappearing from media, Jack Ma had to reappear when the regulatory authorities demanded Alibaba’s executives to appear for inquiries.
The company is now hoping to earn back its old market worth and trying to get rid of all loose ends so it can start experiencing a rise in its share prices.
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