Alibaba stock pops after conclusion of regulatory overhaul
Alibaba Group (BABA) shares are on the rise heading into Friday's market open, as the Chinese e-commerce giant concludes a three-year regulatory process. This comes after the company was hit with a multi-billion dollar antitrust fine by China’s State Administration for Market Regulation (SAMR) in 2021 for monopolistic practices.
Morning Brief co-hosts Brian Sozzi and Brad Smith break down the details of this development.
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This post was written by Angel Smith
Video transcript
Alibaba shares right now take a SBAB A.
They are rising right now by about 4% here.
Pre market.
The company completed a three year regulatory process following an antitrust fine that it received for monopolistic, um, allegations here.
Now, Alibaba has completed a three year process, Uh, following that antitrust fine that it received for monopolistic practises in 2021.
China's market regulator said on Friday here, uh, you'll think back and this really kind of, uh cements more of the shift, at least in sentiment, that China has at this point trying to drum up a little bit more consumer confidence in that region.
But then additionally kind of easing on some of the crackdowns that they had previously implemented and put it into place.
I mean, at one point, we were looking at a potential six way split up of Alibaba.
No mas, Yeah, I think our team just puts Alibaba anytime I decide to guest host because they know I don't really.
I like talking about Alibaba and I say the same thing.
You can put my comments all together and they're all going to do the same as long as the China economy is under pressure.
Alibaba is just not going to get it done.
I mean, I would be concerned about the earnings reports.
Be concerned about the top line.
Be concerned about margins, cash flow, you name it and then secondarily, uh, what does this company do?
Uh, I know they're an ecommerce play, but they operate other businesses until I think they can prove that out.
That all those businesses still work.
They tried to be Amazon.
They tried to be Amazon.
And and again, there's only one Amazon.