BABA Stock News: Alibaba Group drops further as new chip restrictions weigh on Chinese ADRs


  • NYSE: BABA fell by 4.9% during Tuesday’s trading session. 
  • Alibaba established a new 2.1-million-square-foot campus for its Cloud division.
  • The US export restrictions on semiconductor chips continued to weigh on Alibaba. 

 

Alibaba Group (BABA) slipped further on Tuesday as the stock continued to see selling pressure following the United States restricting exports of semiconductors to China. Shares of BABA fell by 4.9% and closed the trading session at a price of $75.37. It was another volatile day of trading on Wall Street as stocks jumped higher out of the gate but erased those gains by the closing bell. The S&P 500 fell for the fifth straight day, while the Nasdaq closed at its lowest price since July 2020. Overall, the Dow Jones managed to post a 0.1% gain, while the S&P 500 and the Nasdaq fell by 0.7% and 1.1%, respectively, during the session. 

Alibaba stock price

Alibaba recently established a brand new 2.1-million-square-foot complex for its Alibaba Cloud division in Hangzhou. The corporate campus spans ten different buildings and over 450,000 square meters of floor space. It is approximately the same size as Alphabet’s (GOOGL) Silicon Valley headquarters in Mountain View, California. Alibaba’s Cloud division continues to be one of its fastest-growing segments, accounting for 9% of its revenue in the most recent quarter.

Alibaba’s stock was clearly still being impacted by the recent export restrictions that were placed on China by the United States. The restrictions will see a ban on equipment being sold to China that previously allowed companies to make advanced chips. The purpose of the restrictions is to stifle Chinese technology and military advancements, so it should come as no surprise that Chinese tech stocks continued to show weakness on Tuesday. 

BABA 5-minute chart 10/11/22

 

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD holds steady near 0.6250 ahead of RBA Minutes

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 Monday for some insight into the interest rate outlook. 

AUD/USD News
USD/JPY consolidates around 156.50 area; bullish bias remains

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. 

USD/JPY News
Gold price bulls seem non-committed around $2,620 amid mixed cues

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.

Gold News
Week ahead: No festive cheer for the markets after hawkish Fed

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.

Read more
Bank of England stays on hold, but a dovish front is building

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.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures