CNBC host Jim Cramer said he likes Chinese e-commerce giant Alibaba Group Holding Limited (NYSE:BABA) “very much” and recommended that investors buy and hold on to the stock.
What Happened: On the CNBC “Mad Money" lightning round Tuesday, Cramer noted that Alibaba’s stock has fallen a lot.
“I think you should buy it and put it away,” he said.
Earlier this month, Cramer said he likes Alibaba, but can endorse Baidu Inc. (NASDAQ:BIDU) too.
See Also: These Alibaba Options Traders See Upside Ahead
Why It Matters: Alibaba’s stock is down 33.9% from a 52-week high of $319.32 it touched in late October last year. The stock is down 9.28% year-to-date.
Alibaba has faced increased regulatory scrutiny in China since October last year after its co-founder Jack Ma criticized China's banking sector as operating with a “pawnshop mentality." The government scuttled the planned blockbuster Ant Group IPO shortly after Ma made the comments.
Alibaba was hit with a record $2.8 billion fine in April over purportedly abusing its dominant market position in the country.
It was reported earlier this month that a consortium led by Alibaba has invested $400 million in the consumer retail arm of Vietnamese conglomerate Masan Group Corp.
Price Action: Alibaba shares closed 0.3% higher in Tuesday’s regular trading session at $211.13 and further rose another 0.3% in the after-hours session to $211.80.
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