- China’s cyberspace administration and police have summoned the cloud units of Alibaba Group Holding Ltd (NYSE: BABA) and Baidu Inc (NASDAQ: BIDU) for better telecom fraud prevention policies, Reuters reports.
- The Ministry of Industry and Information Technology stated via Weibo Corp (NASDAQ: WB) that Alibaba and Baidu’s cloud platforms allow access to fraudulent websites.
- China was building its state-backed cloud system as it announced a crackdown on telecom and internet fraud.
- Alibaba has suffered a colossal dent in its market cap following a countrywide regulatory crackdown.
- Alibaba and Baidu need to “earnestly fulfill their main responsibilities for network and information security,” the industry ministry statement said.
- Related Content: Chinese Regulators At It Again: Tech Stalwarts Including Alibaba, Tencent And Baidu Fined $3.4M For Violating Antitrust Regulations
- Analyst Rating: Needham analyst Vincent Yu maintained Alibaba with a Buy and lowered the price target from $330 to $230, implying a 70.1% upside.
- Price Action: BABA shares traded lower by 2.17% at $133.65 on the last check Tuesday.
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