What’s happening with Alibaba?

Following the crackdown by Chinese government on tech companies and the brief disappearance by Jack Ma, his company Alibaba has fallen from all-time highs into the black hole we see the stock at now. Alibaba traded for well over 300 per share back in November of 2020 which was the height of the pandemic only to crash to a low of 73 dollars per share by March 2022. Alibaba still trades at a P/E ratio of nearly 30 and has a short interest of less than 2%, even when it rallied up 50% less than a month ago short interest never topped 3% which indicates it was most likely not a short squeeze. There are many factors that weigh on the topic of why Alibaba is sitting where it currently is, and I believe it is an amalgamation of all of these factors. Government crackdown, overvalued, and post pandemic. Though they have had a series of bullish analysts raising price targets, I personally think it will get worse before it gets better.

Yahoo Finance

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