After holding around $88 for over a month, China’s small moves to ease restrictions sent Alibaba Stock
to around $121. The next day, on June 9, 2022, China regulators denied that it would revive an Ant IPO.
Alibaba is not investable until China permits it to spin off its fintech division. The government posted a
Common Prosperity that was over 100 pages long. In it, the government spelled its displeasure with
technology firms' dominance. Since then, it fined Alibaba. The company also contributed to the
Common Prosperity fund.
China’s economic slowdown worsened when it locked down Shanghai in late March. The lockdown
extended to over two months. The government had too ambitious a plan to prevent the spread of
omicron. Despite low death rates and low risks from this variant, the Communist Party damaged its
economy.
Alibaba posted quarterly results on May 26, 2022. Revenue grew by just 8.9%. Since it beat consensus
estimates and reported an annual active consumer count of 1.31 billion globally, BABA stock rose.
Alibaba bought back $2 billion worth of shares in the last quarter or 1% of outstanding shares. It bought
$10 billion of shares in the last year.
Investors taking advantage of the rally to close the position will sell today. Alibaba will likely resume its
downtrend.
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