Advertisement
U.S. Markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0797
    +0.0003 (+0.0324%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • Vix

    13.01
    0.00 (0.00%)
     
  • GBP/USD

    1.2625
    +0.0002 (+0.0189%)
     
  • USD/JPY

    151.3030
    -0.0690 (-0.0456%)
     
  • BTC-USD

    69,932.02
    -82.73 (-0.12%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

Why Are Alibaba Shares Trading Lower Premarket?

  • The U.S. government is reviewing e-commerce giant Alibaba Group Holding Ltd's (NYSE: BABA) cloud business to determine whether it poses a risk to U.S. national security, Reuters reports.

  • The U.S. focuses on how Alibaba stores U.S. clients' data, including personal information and intellectual property, and whether the Chinese government could gain access to it.

  • The U.S. is also concerned over the potential for Beijing to disrupt access by U.S. users to their information stored on the Alibaba cloud.

  • The report noted that a small office within the Commerce Department known as the Office of Intelligence and Security leads the probe into Alibaba.

  • Alibaba, the world's fourth-largest cloud provider according to Canalys research firm, has ~4 million customers and describes its cloud business as its "second pillar of growth." It saw a 50% rise in revenue to $9.2 billion in 2020, though the division accounts for 8% of overall sales.

  • Price Action: BABA shares traded lower by 3.78% at $126.60 in the premarket session on the last check Tuesday.

See more from Benzinga

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement