Alibaba Group Holding Limited (NYSE: BABA) saw a significant boost in its stock value during premarket trading on Friday as the company received a clean chit from domestic regulators. After more than three years of investigative scrutiny, the Chinese e-commerce giant has been cleared of monopoly behavior.

According to the regulator, Alibaba Group has effectively ceased the practice of "picking one from two," which had raised concerns regarding anti-competitive practices. The regulator's approval comes after it penalized the company with a fine of $2.8 billion in 2021, equivalent to 4% of Alibaba's 2019 revenue.

The regulatory scrutiny not only affected Alibaba Group but also impacted its fintech affiliate, Ant Group. The ambitious initial public offering (IPO) of Ant Group also faced regulatory challenges.

Alibaba Group has faced several hurdles in the past year, including intense competition in the domestic e-commerce market amidst a weak economy. Additionally, the company had to navigate a lengthy regulatory crackdown in China and U.S. semiconductor sanctions, which posed risks to its artificial intelligence ambitions.

Looking ahead, analysts on Wall Street have remained positive about Alibaba's prospects. The average 12-month price target for the company's stock is $106.45, with a high target of $130.0 and a low target of $85.0. Out of the analysts covering Alibaba, 9 have positive ratings, while 2 have neutral ratings.

Despite the challenges, Alibaba's stock has shown resilience, gaining 8.37% year-to-date. The average analyst price target suggests that there could be further upside potential for the stock.

Alibaba Group's clearance from the regulatory scrutiny is seen as a positive development for the company, boosting investor sentiment and driving up its stock value. The full impact of this clearance, however, remains to be seen as Alibaba continues to navigate through a rapidly evolving business landscape.

Overall, this development signifies a positive turning point for Alibaba Group as it seeks to regain its position as a global leader in the e-commerce industry.

Disclaimer: This article is not investment advice. The information provided is based on the mentioned sources and the analysis of market trends. It is recommended to consult with a financial advisor before making any investment decisions.