- NYSE:BABA fell by 2.03% during Thursday’s trading session.
- The Chinese Government is drafting new regulations that could affect Chinese tech companies.
- AliBaba is looking to enter the data intelligence and analytics industry.
NYSE:BABA dropped lower again as downward selling pressure has hit growth stocks throughout the week. Much of this came from more hawkish remarks from Fed Chairman Powell as he reiterated the need to tackle inflation. On Thursday, shares of BABA dipped by 2.03% and closed the final trading session of June at $113.68. All three major averages closed lower for the third time this week as the S&P 500 closed out its worst first half of trading since 1970. On Thursday, the Dow Jones sank by 253 basis points, while the S&P 500 and NASDAQ posted losses of 0.88% and 1.33% respectively during the session.
Stay up to speed with hot stocks' news!
The Cyberspace Administration of China (CAC) has been drafting new regulations that would affect tech companies that collect user data. This includes firms like AliBaba, JD.Com (NASDAQ:JD), Tencent, and PinDuoDuo (NASDAQ:PDD). Beijing has emphasized the importance of protecting its citizen’s personal data over the past couple of years. This most famously resulted in the delisting of Chinese ride-hailing services Didi Global from the New York Stock Exchange earlier this year. In the proposed draft, companies like AliBaba would be legally responsible if anything were to happen during the transfer of personal data both domestically or overseas.
Alibaba stock forecast
In related news, AliBaba is looking to enter the data analytics and intelligence space through a new subsidiary called Lingyang Intelligence Service Company. The goal of this subsidiary is to provide enterprise digital intelligence services. AliBaba is calling this new service, DaaS or Data as a Service, and will likely start by providing this to domestic companies in China. This could pit AliBaba against other enterprise services companies like Salesforce.com (NYSE:CRM) and even Microsoft (NASDAQ:MSFT).
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds steady near 0.6250 ahead of RBA Minutes
The AUD/USD pair trades on a flat note around 0.6250 during the early Asian session on Monday. Traders brace for the Reserve Bank of Australia Minutes released on Tuesday for some insight into the interest rate outlook.
USD/JPY consolidates around 156.50 area; bullish bias remains
USD/JPY holds steady around the mid-156.00s at the start of a new week and for now, seems to have stalled a modest pullback from the 158.00 neighborhood, or over a five-month top touched on Friday. Doubts over when the BoJ could hike rates again and a positive risk tone undermine the safe-haven JPY.
Gold price bulls seem non-committed around $2,620 amid mixed cues
Gold price struggles to capitalize on last week's goodish bounce from a one-month low and oscillates in a range during the Asian session on Monday. Geopolitical risks and trade war fears support the safe-haven XAU/USD. Meanwhile, the Fed's hawkish shift acts as a tailwind for the elevated US bond yields and a bullish USD, capping the non-yielding yellow metal.
Week ahead: No festive cheer for the markets after hawkish Fed
US and Japanese data in focus as markets wind down for Christmas. Gold and stocks bruised by Fed, but can the US dollar extend its gains? Risk of volatility amid thin trading and Treasury auctions.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.