From Nasdaq:

Shares of Alibaba Group (NYSE: BABA) declined today due to signs of weakness in the Chinese economy. China reported a 5.2% GDP growth, ahead of schedule, leading to concerns about data manipulation. The 3.1% drop in stock prices further highlighted the impact of Chinese regulations on Alibaba, prompting doubts about quick recovery.

Any rise of Alibaba’s stock will depend on a broader Chinese economic rebound. The company’s profitability and revenue growth, a P/E ratio of around 10, and a strong market position provide some hope, but persistent concerns about the Chinese economy significantly limit prospects for a sudden recovery.

Investors may want to keep a close eye on developments in the Chinese economy and Alibaba’s prospects. Meanwhile, The Motley Fool Stock Advisor team has identified 10 promising stocks, none of which are Alibaba Group. The service has a proven track record, tripling the return of the S&P 500 since 2002.



Read more: Why Alibaba Stock Was Falling Again Today