Alibaba has recently faced a massive lawsuit against its integrity that pressed anti-monopoly charges towards the company in China, asking a massive sum of $2.8 billion (18.23 billion yuan) to pay after investigation. However, despite this happening, Alibaba manages to rise in shares and stocks by eight percent, assuring investors that the company remains strong during these times.
The popular e-commerce and multinational technology company from Jack Ma has been facing charges for observing monopolistic business transactions and behavior among its industry. The lawsuit was mainly in China, but Alibaba is known to have its operations available worldwide, with its investors stretching to the United States.
The case's fine was a massive suit against the company, especially as it challenges the company's honor in business procedures that it has observed for the past years and transactions. The suit has also presented major worries and doubts with the investors for Alibaba, but this is something that does not bother the management.
Alibaba Stocks Rise Amidst Lawsuit
According to CNBC, a surprising turn of events has occurred in Alibaba's standing after the lawsuit where its stocks in Hong Kong have risen by eight percent amidst the issues that the company was facing. Alibaba was said to have been promoting a bad business practice that pushes its consumers to use only one application, instead of its two platforms for online retail in China.
The lawsuit has affected Alibaba's standing in the market, but its conclusion has pushed the company back on its feet to "focus on its fundamentals" and bounce back after this setback. The exclusivity arrangement has not caused a lot of changes within the company says CEO Daniel Zhang, as he addressed the company's state after the suit.
The lawsuit has focused on topics that point to Alibaba's breach of the terms it has posted among its merchants and the business owners that operate or post their products on the online platform. BABA, however, sees a decline in the New York Stock Exchange (NYSE), which the company said to be focusing on and trying to fix.
Alibaba Assures Investors, Shareholders
According to Alibaba's CEO, Daniel Zhang (via South China Morning Post), the company is now aiming to fix its dealings and performance in the stock market after the decline caused by the lawsuit. However, Zhang regarded this as something small, and would not affect the company greatly, despite the change in their setup.
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Written by Isaiah Alonzo
