In its annual report filing on Tuesday, Alibaba Group Holding Ltd. (NYSE: BABA) revealed that it is the subject of a U.S. Securities and Exchange Commission (SEC) investigation into possible violations of federal securities laws. The company did not give a precise date for the beginning of the probe, saying only that it began earlier this year.
The Form 20-F filing reports the following details:
The SEC has requested that we voluntarily provide it with documents and information relating to, among other things: our consolidation policies and practices (including our accounting for Cainiao Network as an equity method investee), our policies and practices applicable to related party transactions in general, and our reporting of operating data from Singles Day. We are voluntarily disclosing this SEC request for information and cooperating with the SEC and, through our legal counsel, have been providing the SEC with requested documents and information. The SEC advised us that the initiation of a request for information should not be construed as an indication by the SEC or its staff that any violation of the federal securities laws has occurred. This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded.
Singles Day, November 11, is the biggest online sales day of the year in China. Alibaba reported sales of $14.3 billion on Singles Day in 2015, up from $9.3 billion in 2014.
Alibaba’s share price dipped more than 4% Wednesday morning, and the stock traded at around $77.68 in a 52-week range of $57.20 to $92.99. The consensus price target on the stock is $95.44.
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
