How is Alipay related to Alibaba? Alipay is owned by Jack Ma’s Ant Group. Jack Ma is the co-founder of Alibaba. Alibaba has a one-third stake in Ant Group.
Why do the regulators want to break up Alipay? Alipay has more than 700 million active users every month, and its loans businesses account for about 10% of the country’s non-mortgage consumer loans. Chinese regulators are concerned about financial risk building in the economy. The regulators want Ant Group to create a separate app for the company’s loans businesses, and also want them to share user data to a new credit-scoring joint venture that would be partly state-owned. Uh oh... This means that they would be subjected to stricter rules and scrutiny.
Why is this important? The crackdown on Chinese tech firms is intensifying. Authorities are keeping their watchful eyes on tech companies in the country and the amount of influence these companies have on the economy. 👀
Just this week, China's Ministry of Industry and Information Technology ordered the country's internet firms to allow rivals' links to be displayed on their platforms. It has been a long-standing practice in China to block competitors’ links from being displayed on platforms. The Ministry said that they will punish those who fail to correct their actions, but didn’t explicitly specify the deadline or the punishment.
Alibaba already had BILLIONS wiped off its market cap over the last 10 months ever since Ant Group's mahoosive IPO got blocked at the last minute. The impact of the crackdown is obvious... Investors are getting nervous. For example, Cathie Wood has dramatically reduced her holdings in U.S.-listed Chinese tech stocks.
📉 Virgin Galactic closes nearly 4% lower ⏬
Uh oh... Trouble in paradise? Or shall I say space? 🚀
Virgin Galactic (SPCE) is down nearly 4% after a third-party supplier warned of a potential defect in a component of the flight control system. Hope they get this sorted soon… People wanna go to space for their vacay! 👩🚀
Virgin Galactic closed at $24.26, down 3.58% for the day.
📈 Disney will premiere their movies exclusively in the theatres 🍿
Want to watch upcoming Disney (DIS) movies as soon as they are released? Go to the theatres, then! Don’t forget to get some popcorn! 🍿 Disney has mentioned that they will be making the remainder of its 2021 movies available exclusively in theatres, rather than make them simultaneously available on Disney+.
Shares of Disney are up 4.11% year-to-date and closed at $184.98.
Top movers & shakers 🎢
What else is making headline news 📰
Popular companies releasing earnings this week 💰
Tuesday: FuelCell Energy (FCEL)
Friday: Manchester United (MANU)
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
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The legal stuff 🤓
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