Why Tencent, Alibaba, and JD.com Stocks Dropped Today
Shares of Tencent (OTC: TCEHY), Alibaba (NYSE: BABA), and JD.com (NASDAQ: JD) fell 7.4%, 5.1%, and 4.3%, respectively, on Friday after the U.S. government took several actions against Chinese companies.
President Trump placed bans on popular Chinese-owned social media platforms TikTok and Tencent-owned WeChat that go into effect in roughly six weeks. The move threatens to sever ties for people who reside in the U.S. and use the apps to communicate with friends, family, and business colleagues in China. It could also damage trade relationships between the U.S. and China, making it more difficult for U.S. companies to source their products from Chinese manufacturers.
Chinese internet stocks declined on Friday. Image source: Getty Images.
Source Fool.com
