Alibaba stock, which has been battered this whole year, is facing further challenges as a lockup period on 340 million shares of the company has expired.
That means institutional investors who bought Alibaba Group Holding Ltd. (NYSE: BABA) stock pre-Alibaba IPO now have a chance to cash-in on shares that were previously bound by a lockup agreement that forbid their sale.
Alibaba stock is already down about 18.7% this year. Chinese growth concerns explain why Alibaba stock is falling this year. Investors had further fears that this lockup expiration would prompt a mass sell-off of Alibaba by the big money stakeholders.
However, Alibaba stock is actually up today (Wednesday) a slight 0.3%.
Right now, Alibaba stock is a buy. It's cheap, and fears of institutional investors fleeing the troubled stock are unfounded. Money Morning Capital Wave Strategist Shah Gilani explained why in an appearance on FOX Business' "Varney & Co." today.