shares of Alibaba Group Holding Ltd fell to its lowest level in nearly six months on Thursday after Chinese regulators launched an antitrust investigation into the e-commerce giant

One focus of the investigation was Alibaba’s policy of “choosing one of two,” which requires Alibaba’s business partners to avoid dealing with competitors, the Associated Press reported

“We are not surprised by the investigation’s announcement,” Raymond James analyst Aaron Kessler wrote in a statement to clients. “We believe the most likely outcome is the termination of these exclusive relationships, although difficult is to quantify the potential impact on sales (eg consumers move their purchases to other platforms) ”

Alibaba stocks
BABA,
-1342%
plunged 154% in midday trading to hit its lowest close since Jan. July on The stock is expected to see its largest one-day decline since going public in September 2014, as the current record drop is 8.8% on Jan 29, 2015

With the sell-off, the stock has moved into the bear market area, which many at Wall Start mark as a decline of 20% or more from a significant high. The stock was currently 316% below the record close

Since closing at a record $ 31714 on Oct. On Dec. 27, the stock closed up 196% at $ 25511 on Dec. 15 before some losses are reduced to close at $ 256 on Wednesday18 A closing price at or below USD 25371 would make the bear market “official”

Kessler said he believes investors are already “largely pricing in” investigation concerns, amid the stock’s sharp decline from its record high, as a result of which “we buyers” of Alibaba stock remain at current levels, he said. p>

The stock has lost 196% in the past three months, during the iShares MSCI China Exchange Traded Fund
MCHI,
-267%
gained 7 6% and the S&P 500 index
SPX,
010%
won 138%

The path of the US. The market is heavily dependent on the Georgia Senate outflow, the introduction of Covid-19 vaccines, and the demise of the USAS Dollar

Tomi Kilgore is MarketWatch’s assistant editor for investments and corporate news and is based in New York. You can follow him on Twitter @TomiKilgore

Alibaba stock

World News – CA – Alibaba stock suffers record decline after cartel review in China

Source: https://www.marketwatch.com/story/alibaba-stock-suffering-record-drop-after-antitrust-probe-in-china-2020-12-24