Alibaba‘s (NYSE: BABA) stock recently plummeted after the company was hit by a triple whammy of antitrust actions. First, China’s SAMR (State Administration for Market Regulation) fined Alibaba for its unapproved takeover of the department store chain InTime Retail.
Just over a week later, the SAMR launched an antitrust probe into Alibaba’s e-commerce business and its use of exclusive deals to lock in merchants. The agency also summoned Ant Group — Alibaba’s fintech affiliate, which originally planned to go public in November — to a regulatory meeting.
Those three blows erased nearly all of Alibaba’s gains from 2020. Are investors overreacting to the headlines, or could the SAMR cause big headaches for China’s top e-commerce and cloud company?