Why Alibaba Stock Dropped Again Today
Alibaba Group (NYSE: BABA) stock marked its fourth straight day of declines on Wednesday, falling another 2.6% through noon ET. That sounds bad, but actually, the stock's really down only about 5.5% since Thanksgiving Eve.
So not a huge loss, but still...why is a stock valued at less than 11 times earnings and only 8 times free cash flow falling at all?
Yesterday, we took a look at Alibaba's announcement that it's closing down its quantum computing research business, boxing up its equipment, and donating it all to Zhejiang University rather than continue losing money on the project. Management has previously blamed "U.S. restrictions on export of advanced computing chips" for its inability to make sufficient progress in quantum computing and artificial intelligence to justify the expense.
Source Fool.com
Alibaba Group Holding Ltd ADR Stock
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