Alibaba (NYSE:BABA) stock is falling on Tuesday after China put into place more restrictions related to Covid-19.
According to The New York Times, several parts of China are going into lockdowns after new cases of Covid-19 were reported. Currently, those cases stand at about 1,500. That’s not much when compared to the 60 million people affected by the lockdowns.
Even so, China is pushing forward with its zero Covid policy by putting additional restrictions in place. This has many residents staying home and ordering food for delivery. And there’s no denying the effect this will have on the country’s businesses.
That includes Alibaba, which has already been feeling the effects of lockdowns over the last three years. Without workers to manage its warehouses, the e-commerce company will have difficulties getting goods to customers.
Adding to that, the economy of China has suffered due to the Covid-19 lockdowns. Unemployment continues to remain high with young people in particular not going back to work after restrictions lift.
With fewer people working and spending money, Alibaba has fewer active customers to serve. If these new lockdowns are any sign, things could only get worse on that front moving into flu season.
BABA stock is down 4% as of Tuesday morning and is down 26.7% since the start of the year.
Investors seeking more of the latest stock market news will want to stick around!
InvestorPlace is home to all of the hottest stock news traders need to know about for Tuesday! That includes why Digital World Acquisition (NASDAQ:DWAC) stock is falling, this morning’s biggest pre-market stock movers, and talk of a worsening housing crash. You can find that news at the links below!
More Tuesday Stock Market News
- Why Is Digital World (DWAC) Stock Plunging Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
- Why the Housing Market Crash Could Get Worse in 2023
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.