Why Alibaba Shares Are Trading Lower Today

Shares of several Chinese companies, including Alibaba Group Holding BABA, are trading lower as investors weigh reports the U.S.-China relationship is in a "stalemate" following a meeting between officials from the two countries.

Chinese stocks are also under pressure amid regulations introduced by the Chinese government regarding for-profit education companies, which investors fear may have implications for other industries.

Alibaba is the world's largest online and mobile commerce company, measured by GMV (CNY 6.6 trillion/$1 trillion for the fiscal year ended March 2020). It operates China's most-visited online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).

Alibaba's China commerce retail division accounted for 69% of revenue in the December 2020 quarter, with Taobao generating revenue through advertising and other merchant data services and Tmall deriving revenue from commission fees.

Alibaba shares are trading lower by 4.5% at $197.19. Alibaba has a 52-week high of $319.32 and a 52-week low of $198.26.