Alibaba shares post worst week since 2015

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U.S.-listed shares of Alibaba Group Holding Ltd. dropped 1.3% in Friday trading to close out one of the worst trading weeks on record for the company. Shares fell 13% on the week, making for their steepest weekly decline since the week that ended Jan. 30, 2015. Alibaba wrapped up its Singles Day shopping festival Wednesday, reporting $74.1 billion in gross merchandise volume over the course of the event, but shares of Chinese names including Alibaba came under pressure over the course of the week as Chinese market regulators drafted new guidelines that seemed aimed at dominant marketplaces in the country. “The act is viewed as the government’s first official attempt in defining and regulating monopolistic behaviors,” Raymond James analyst Aaron Kessler wrote in a Nov. 10 note to clients. “We view the guidelines as an attempt to check the power of large tech platforms, including the largely e-commerce marketplaces.” He has a strong buy rating on the shares, which have gained 23% so far this year as the S&P 500 has risen 11% and as the KraneShares CSI China Internet ETF has increased 59%.
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