Alibaba Stock Plunges 8% Even After Record $56 Billion Singles Day! Why?

Access To Financial Markets Made Easy • Nov 11, 2020 at 5:05 AM EST

Chinese e-commerce giant, Alibaba (BABA), just set a new sales record for its annual Singles Day shopping event which took place on 11 November. As of 12:30 am Beijing time the company's gross merchandise value was $56.42 billion.

Alibaba stock plunges 8% even after record $56 billion Singles day! Why?

Other e-commerce giants such as JD.com also run huge discounts at the same time. While typically a 24-hour sales event, this year both companies have extended the shopping event and it ran from 1 November and will end on 12 November. This event generates more sales than Black Friday and Cyber Monday in the US combined!

However, Alibaba's stock price was down 8% and JD.com's share price was also down over 5% after the news. Both stocks took a hammering on news that the Chinese government have proposed new antitrust regulations. The State Administration for Market Regulation, for the first time, released rules on what constitutes anti-competitive behaviours in pricing, payment methods and data used to target shoppers.

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