what happened
Chinese e-commerce leader Alibaba (NYSE: BABA) experienced a few months since billionaire founder Jack Ma gave a speech in October that the Chinese government does not appreciate.
The stock has slipped 20% since then, but it reversed the trend today with a gain of more than 4% from 15:30 EST.
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Approximately
In addition to the domestic problems the company’s founder is experiencing, the U.S. government has indicated that it is possible that some Chinese companies may be removed with ties to China’s military and security services. Alibaba and internet giant Tencent Holdings (OTC: TCEHY) has since been included in the ban on investors’ radar if possible. But the latest list of companies linked to China’s military does not include the two companies, according to a report by StreetInsider citing Bloomberg.
Now what
Many of China’s technology companies were in the spotlight of the outgoing US government in their struggle with Chinese leaders. But every equity investment involves risk, and the reasons for that will vary. International investments pose some unique risks.
These risks should be part of any decision when buying or selling. Well-known investor Bill Miller said in an interview with CNBC today that he thinks the recent dive into Alibaba is a buying opportunity. While this type of macro news stock will move, long-term investors need to focus on the business itself and make sure that any investment matches the inherent risks.