Alibaba Under Investigation for Securities Violations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy BABA?
Source: Businesswire
- Investigation Background: The Law Offices of Frank R. Cruz is investigating Alibaba Group for potential violations of federal securities laws, particularly focusing on claims for investors who have suffered losses, highlighting serious concerns regarding the company's compliance.
- Security Threat Allegations: According to a Financial Times report, a White House memo claims that Alibaba provides capabilities to the Chinese military that threaten U.S. security, including access to customer data such as IP addresses and payment records, which exacerbates investor anxiety.
- Stock Price Volatility: On November 14, 2025, Alibaba's stock fell by $6.04, or 3.78%, closing at $153.80 per share due to the allegations, reflecting market uncertainty about the company's future.
- Pentagon Listing: On February 13, 2026, the Pentagon added Alibaba to a list of companies aiding the Chinese military, only to withdraw it minutes later, causing the stock to drop nearly 4% during intraday trading, further harming investor interests.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 158.730
Low
172.00
Averages
203.66
High
230.00
Current: 158.730
Low
172.00
Averages
203.66
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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