TAL - Why Agora Stock Plummeted 22% on Friday
Shares of Agora (NASDAQ: API) were down as much as 25% on Friday after the Chinese Communist Party (CCP) announced new sanctions on technology companies in its home country. As of 1:39 p.m. EDT, Agora stock was down 22.2% on the day.
On Friday, news was circulated that the CCP was looking to heavily regulate the private education and tutoring industry. TAL Education Group (NYSE: TAL) and Gaotu Techedu (NYSE: GOTU) , two stocks operating in this space, were down over 50% on the news. It was also reported by Bloomberg News that regulators are planning harsh punishments against ride-hailing company Didi Global (NYSE: DIDI) as well after it upset members of the CCP, which has supreme rule over companies operating in the country. The Bloomberg report stated that Didi Global could be forced to pay a fine even bigger than the $2.8 billion tech giant Alibaba (NYSE: BABA) had to pay last month.
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Why Agora Stock Plummeted 22% on Friday