Here's Why Alibaba Shares Are Trading Lower Premarket

Global investors trimmed Alibaba Group Holding Limited BABA fintech affiliate Ant Group Co's valuation before its suspended initial public offering, Bloomberg reports.
Fidelity Investments slashed its estimate for Ant to $70 billion at the end of May, down from $78 billion in June 2021 and $235 billion just before Ant's IPO suspension in November 2020.
BlackRock, Inc BLK reduced the value to $151 billion as of March from $174 billion, while T. Rowe Price Group, Inc TROW trimmed it to $112 billion as of May, down from $189 billion in 2021.
Ant's profit fell 17% for the March quarter amid an ongoing regulatory overhaul.
Investors including Warburg Pincus Capital Corp WPCA, Canada Pension Plan Investment Board, Silver Lake, and Temasek Holdings Pte had invested in Ant at $150 billion four years ago.
Ant is amid restructuring to beef up capital, curbing consumer lending, and shuffling its management.
Jack Ma weighed ceding his control of 50.52% voting rights in the firm.
China quashed Ant's $34 billion-plus IPO in 2020 at the eleventh hour, forcing the technology firm to restructure as a financial holding company regulated by China's central bank.
Price Action: BABA shares traded lower by 1.33% at $92.95 in the premarket on the last check Tuesday.
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