Yahoo Finance Live's Akiko Fujita discusses the Biden administration looking into Alibaba's cloud unit and what they are doing with data collection of U.S. customers.
Let’s face it, stocks have been under a lot of pressure lately. Growth stocks have been getting especially hurt.
Shares of China's Alibaba Group Holding (NYSE: BABA) stock tumbled on Tuesday, down 2.8% as of 1:45 p.m. ET after Reuters reported that the U.S. government is investigating its cloud business "to determine whether it poses a risk to U.S. national security." Corollary concerns regarding the safety of intellectual property stored on Alibaba Cloud and about Beijing's ability "to disrupt access by U.S. users to their information stored on Alibaba cloud" were also mentioned. It's unclear precisely how big of a risk this investigation is to Alibaba.