Chinese companies including Alibaba Group Holding Ltd BABA were trading lower Tuesday in sympathy with Chinese ride-hailing service DiDi Global Inc DIDI.
Investor concerns center around risk to the companies after the Chinese government announced it was conducting a cybersecurity review of DiDi Global just days after the company was listed on the New York Stock Exchange.
Alibaba offers too much investor potential to sell the stock on these concerns, Boston Private's Shannon Saccocia said Tuesday on CNBC's "Fast Money Halftime Report."
There is an additional layer of risk involved with stocks where there are significant government intervention concerns, Saccocia said. The Chinese government knows there has to be some give and take if it wants to compete globally, she said.
Alibaba is both an e-commerce and cloud play, Saccocia said, adding the stock offers significant opportunity over the next couple of years for investors willing to take on the additional risk.
Related Link: Why Alibaba And New Oriental Education Shares Are Volatile Today
BABA Price Action: Alibaba has traded as high as $319.32 and as low as $204.39 over a 52-week period.
At last check Tuesday, the stock was down 3.27% at $210.64. Photo: courtesy of Alibaba.
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