Why Alibaba Fell 10.8% in April
Shares of Alibaba Group Holding (NYSE: BABA) fell 10.8% in April, according to data from S&P Global Market Intelligence. Alibaba, like many other Chinese stocks, was battered to begin the month, as the Chinese government continued to crack down on parts of the country's technology sector. That came on top of widespread lockdowns in Shanghai as the country pursued a "zero-COVID" policy. On top of all that bad news, a famous Alibaba investor cut his stake by 50% to start the month.
At one point, Alibaba was down even more severely. Yet on the last trading day of April, the stock spiked to finish the month "only" down 10.8%, after a bit of hopeful news came out of government officials in Beijing.
April did not start off well for Alibaba. Rising COVID-19 cases in China prompted severe lockdowns, which threatened to hurt already subpar economic growth in the country. The new lockdowns came on top of the regulatory assault on technology that had begun 18 months ago, combined with the bursting of China's property bubble last summer, painting a dreary picture. That led analysts at Citigroup to downgrade Alibaba in a note to begin the month.
Source Fool.com
