Why I'm Not Touching Alibaba in 2023
Chinese technology conglomerate Alibaba Group (NYSE: BABA) remains as tempting as ever for investors. The company, one of the largest companies in one of the world's largest economies, continues sliding, now down 76% from its peak.
But its slide seems more than justified, and the dark clouds hanging overhead should make the admittedly cheap valuation irrelevant to investors. Here are three reasons investors should think twice before investing in Alibaba in 2023.
United States investors are still at risk when investing in Chinese-based businesses; relations between the two countries are tense, which brings some uncertainty into the equation. For example, the U.S. Securities and Exchange Commission requires access to financial audit records of Chinese companies like Alibaba. Alibaba was placed on a watchlist for delisting from U.S. exchanges earlier this year for failing to comply with this requirement. Delisting appears unlikely at this point, and investors could still trade shares in over-the-counter markets in the event of delisting. Still, it could undermine investor confidence in the stock.
Source Fool.com
