Jim Cramer Sees Both Regulation And Fundamental Concerns For Alibaba

Alibaba Group Holding Ltd (NYSE: BABA) is one of the most widely held Chinese stocks in the U.S. The stock has trended lower recently on regulation concerns in China. 

Alibaba was fined Wednesday by antitrust regulators on accusations that the company violated China's anti-monopoly law by failing to seek approval when acquiring other companies, which may have improperly increased the company's market control. 

Alibaba stock has traded lower amid regulation concerns, but now it's headed lower on fundamentals, Jim Cramer said Thursday on CNBC.

"That's not good," Cramer emphasized. 

See Also: Alibaba's Position In E-Commerce, Cloud Stronger Than Feared By Wall Street, Says Analyst

Mizuho analyst James Lee maintained a Buy rating and $285 price target on Alibaba, however, the analyst believes core EBITA estimates are too high. Expectations could be more than 10% too high, the analyst said in a note. 

Price Action: Alibaba has traded as high as $319.32 and as low as $204.39 over a 52-week period. 

At last check Thursday, the stock was down 3.52% at $200.67.

Photo: courtesy of Alibaba.