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Sept. 2, 2021, 10:21 a.m. EDT

Alibaba stock extends corrective bounce after pledge to spend $15.5 billion for 'common prosperity' amid regulatory scrutiny

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By Tomi Kilgore

Shares of Alibaba Group Holding Ltd. /zigman2/quotes/201948298/composite BABA +0.10% rose 0.8% in morning trading Thursday, to put them on track for a fourth straight gain, even as the China-based e-commerce giant continued to face regulatory scrutiny. The stock has rallied 9.6% over the past four sessions, and has corrected 10.6% since closing at a 2-year low of $157.96 on Aug. 20. Many on Wall Street view a rise, or fall, of at least 10% to up to 20% from a significant low or high as a correction, while moves of 20% or more are considered new bull or bear markets. Chinese regulators criticized ride-hailing companies, including Alibaba's AutoNavi, for using false promotions and making use of unqualified drivers and cars, according to a notice posted on the Ministry of Transportation's social media account, according to a Dow Jones Newswires report. Separately on Thursday, Alibaba vowed to spend RMB100 billion, or about $15.5 billion, by 2025 for the government's "common prosperity" drive, according to report in The Wall Street Journal , at a time that regulators were clamping down on technology giants for contributing to social divides. Alibaba's stock has dropped 20.4% over the past three months, while the iShares MSCI China ETF /zigman2/quotes/206267952/composite MCHI +0.08% has lost 13.5% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.37% has gained 7.8%.

/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 177.18
+0.18 +0.10%
Volume: 33.71M
Oct. 20, 2021 4:01p
P/E Ratio
21.90
Dividend Yield
N/A
Market Cap
$459.65 billion
Rev. per Employee
$420,723
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/zigman2/quotes/206267952/composite
US : U.S.: Nasdaq
$ 72.61
+0.06 +0.08%
Volume: 2.89M
Oct. 20, 2021 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,536.19
+16.56 +0.37%
Volume: 1.84B
Oct. 20, 2021 5:04p
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