Ant Group’s valuation might fall to $29b amidst regulatory scrutiny: analyst
Pre-clampdown, the group’s valuation is at $320b, according to Bloomberg Intelligence.
Ant Group’s valuation could plummet to as low as $29b amidst a regulatory clampdown that could see the company be regulated more like a bank, according to a report by Bloomberg Intelligence.
Pre-clampdown, Ant Group’s valuation is at $320b, said analyst Francis Chan. However, the tightening regulations could push Ant’s revenue growth to the low tens compared with the 30% it reported last November 2020, dragging down profit prospects—and along with this, it’s valuation, forecasted to be between $115b and $29b.
The company’s consumer lending units Huabei and Jiebei could suffer with their links being removed from Alipay, which has a billion users, Chan said.
Moving forward, Ant will face more restrictions accessing and using personal information via credit investigations, he added.
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