Why Alibaba Stock Cratered This Week
Shares of Alibaba (NYSE: BABA) got crushed this week, plunging as much as 18.7%. As of the market close on Friday, the stock was down 15.4%.
There wasn't one single catalyst but rather a trifecta of bad news that sent the e-commerce provider careening lower.
The stock got hit coming out of the gate Monday on reports that Alibaba was one of several companies to be fined for regulatory violations. China's State Administration for Market Regulation levied a fine of 2.5 million yuan (roughly $370,000) for failing to report five acquisitions to government antitrust regulators. Alibaba generated revenue of $134.5 billion last year, so the fine is a drop in the bucket. However, drawing the continuous gaze of China's government watchdogs is never a positive development.
Source Fool.com
