Alibaba Shares Dip 5% On Lost Cyber Security Partnership By Investing.com

Alibaba Shares Dip 5% On Lost Cyber Security Partnership By Investing.com
Alibaba Shares Dip 5% On Lost Cyber Security Partnership By Investing.com© Reuters.

by Daniel Shvartsman

Investing.com – Alibaba (NYSE:) shares traded off in early market action on Wednesday after news of the company being suspended from an information sharing partnership with the central China government.

Per , Alibaba failed to report a vulnerability to the Apache logging framework. This led to the Ministry of Industry and Information Technology (MIIT) suspending a partnership with Alibaba’s cloud unit for six months, pending whether Alibaba can address the issue internally.

Alibaba’s cloud unit accounted for 10% of their most recent quarter’s revenue, and grew at 33% year over year, making it one of their top growth engines. The setback for the unit comes at the end of a long year for Alibaba, which has seen its shares drop 50% for the year and nearly 60% from 52-week highs. Regulatory , concern…

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