Why Alibaba, MercadoLibre, and Sea Limited Stocks Plunged Tuesday
Investors and consumers alike have been vexed by inflation this year, and many had hoped that the latest government reading would show inflationary pressures beginning to ease. When the report dropped Tuesday morning, however, the data was worse than expected, causing a broad-based market sell off.
With that as a backdrop, shares of Alibaba (NYSE: BABA) slipped as much as 5.8%, while MercadoLibre (NASDAQ: MELI) and Sea Limited (NYSE: SE) each tumbled as much as 6.7%. When the market closed Tuesday, the stocks were still trading lower, down 5.5%, 5.8%, and 5.1%, respectively.
Despite a thorough search of all the usual sources -- regulatory filings, earnings, websites, etc. -- there was no company-specific news that could be found to explain the slumping stock prices. This suggests that investors were clearly spooked by the ongoing battle with inflation and how the Federal Reserve Bank will respond to it in the near future.
Source Fool.com
