Alibaba shares dip as Bloomberg reports Ant Group may apply to become financial holding company

June 23, 2022

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Alibaba ($NYSE:BABA) shares dipped on Wednesday even as Bloomberg reported that Ant Group, the financial technology firm founded by Alibaba co-founder Jack Ma, may apply to become a financial holding company later this month, paving the way for an initial public offering. The news outlet, citing people familiar with the matter, said that the move could help Ant Group avoid tougher regulatory scrutiny and boost its valuation. While the potential move would be a positive development for Ant Group, it could have implications for Alibaba. If Ant Group becomes a financial holding company, it would be subject to stricter regulation, which could crimp its growth. In addition, Ant Group is one of Alibaba’s most important business partners, and a successful IPO would likely increase its valuation, which could lead to it demanding a greater share of profits from Alibaba. Alibaba’s shares have been under pressure in recent months amid concerns about the company’s regulatory risks. While the potential move by Ant Group is a positive development, it remains to be seen how it will affect Alibaba’s shares in the long run.

Market Reaction

Alibaba’s stock has mostly been covered positively by the news up until now. However, on Wednesday, Alibaba’s stock opened at $104.2 and closed at $105.2, down 1.2% from its prior closing price of 106.4.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on ALIBABA are made simple by VI app. According to VI Risk Rating, ALIBABA is a medium risk investment in terms of financial and business aspects. You may check out what are the business and financial areas presenting potential risks in our website.



The news sent the stock down 1.2% following day. Despite the dip, Alibaba remains a strong investment. The company has positive news, including strong earnings growth and a recent expansion into Europe. Alibaba is also a leader in the growing e-commerce market in China. The company is expected to continue to grow at a rapid pace, making it a great long-term investment.

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