The Alibaba stock price fell yesterday (Thursday) - a lot. Alibaba Group Holding Ltd. (NYSE: BABA) shares slipped below $90 for the first time since October.
Two factors dovetailed to create a massive sell-off that sent shares down almost 9%.
The first was BABA's lower than expected revenue numbers. Revenue came in 5.6% below analyst expectations. The second was regulatory pressures from the Chinese government, which confronted Alibaba on the sale of counterfeit goods through its website.
Money Morning Technical Trading Specialist D.R. Barton told viewers of CCTV America's "Biz Asia America" that the "growth story" is what has drawn investors to Alibaba in first place. But the perceived threat to this growth story shook those investors out.
"This isn't a juggernaut growth story quarter-after-quarter that people were hoping for," Barton said.
But Alibaba stock is still a buy. Don't miss the profits - find out why it's a solid long-term play in Barton's appearance below:
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