Alibaba Summoned by Chinese Regulator over Live Streaming Irregularities – Report

Alibaba Group’s (NYSE: BABA) Taobao, along with four other e-commerce platforms, including  Pinduoduo (NASDAQ: PDD), and JD.com (NASDAQ: JD), has been summoned by a consumer protection organization in China’s Zhejiang Province, Reuters reported. 

According to the source, the companies were summoned due to live-streaming irregularities during the Singles’ Day shopping festival. Notably, ByteDance’s Douyin, the Chinese version of TikTok, and the video-sharing mobile app Kuaishou were also summoned. 

Reasons Behind Summon 

According to the consumer protection organization, around 30% of live-streamers showed irregularities during the Singles’ Day festival, while almost 40% of the products sold during the event did not meet national standards. 

Additionally, the Cyberspace Administration of China (CAC) revealed that online platforms, including social media networks and video-sharing sites, will be thoroughly scrutinized to reduce deception on the internet.

Wall Street’s Take 

Recently, Daiwa analyst John Choi reiterated a Buy rating on Alibaba but lowered the price target to $170 (43.27% upside potential) from $195. 

Consensus among analysts is a Strong Buy based on 22 Buys versus 3 Holds. The average Alibaba price target of $203.65 implies 71.62% upside potential from current levels. However, shares have lost 46.6% over the past year. 

Website Traffic 

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Alibaba’s performance this quarter. According to the tool, the Alibaba website recorded a 10.13% decrease in global visits in November compared to the same period last year. Also, a quarter-to-date comparison showed a decline of 3.76% compared to Q3 2021, while year-to-date website traffic growth stands at 1.67%. 

Related News: 
Allakos Reveals Topline Results from ENIGMA 2 & KRYPTOS Studies; Shares Crash 
Citigroup to Vend Philippines Consumer Bank 
Quidel to Acquire Ortho for $6B; Shares Slide 17%