Alibaba shares fall after Jack Ma steps down from Ant Group

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Alibaba ($NYSE:BABA) shares fell sharply on Friday after news broke that Jack Ma, the company’s founder and one of the most prominent figures in the Chinese tech sector, will step down from his role at Ant Group, an Alibaba affiliate. The move is seen as an attempt to appease Chinese regulators who have been putting pressure on the country’s tech giants for more than a year over issues such as their business practices and management of customer data. It remains to be seen how this development will affect Alibaba’s business in the long term, but it could potentially have a negative impact on the company’s earnings and share price.

Market Reaction

After the news was released, media coverage was mostly positive. On Friday, Alibaba stock opened at $94.2 and closed at $89.4.

VI Analysis

The intrinsic value of Alibaba share is around $277.6, which means that the current share price of $89.4 is undervalued by 68%. The company’s fundamentals reflect its long term potential. The below analysis on Alibaba are made simple by VI app.

Summary

Investors may want to consider buying Alibaba shares on the dip, as the company is still well positioned to capitalize on the growing e-commerce market in China and beyond.