Alibaba Shares Tumble After Nixing Cloud Spinoff on U.S. Chip Curbs

(Bloomberg) — Alibaba Group Holding Ltd. shares tumbled as much as 10% after the company called off a spinoff of its giant cloud business as a result of tightened U.S. curbs on advanced chips for China.

The announcement stunned investors, sending shares down to a low of $78.23 as trading got underway in New York and casting doubt on a historic restructuring laid out just months ago.