Why Alibaba Stock Tumbled (Again) on Friday
Shares of Alibaba (NYSE: BABA) slumped again on Friday, by as much as 5.3%. At the close of trading, the stock was down 1.3%.
The catalyst that sent the tech titan lower was the latest read on the economy on China -- and the news was troubling.
China's gross domestic product (GDP) expanded by just 0.4% year over year in the second quarter, its worst quarterly performance in more than two years. Furthermore, it was far worse than the 1% growth economists forecast, and sharply below the 4.8% increase it generated in the first quarter. This suggests that China is at risk of negative growth in the coming months, which could signal the beginning of a recession.
Source Fool.com
