Alibaba’s Shares Fall Below IPO Price $BABA
As China’s financial market is in decline and with it, dragging down the rest of the global markets, shares of Alibaba Group have unsurprisingly fallen too. Shares of the Chinese e-commence giant fell by 3 percent on Friday, leading to its stock prices sliding below its IPO price for first time since its public offering in September of 2014.
The Chinese giants have been under the spot light as of late, as many have become concerned with the company’s revenue growth, as well as the inability to adapt to the growing competition from rivals JD.com. In last week’s earnings, Alibaba reported that its latest quarter’s revenue rose 28% to $3.26 billion, missing analyst estimates of $3.39 billion.
Founder Jack Ma has been left embarrassed as his global conglomerate has fallen below the $68 mark making his company the second high-profile tech company to fall below its IPO price this week, after the social media site Twitter.
As Alibaba and Twitter disastrous falling stock prices, investors are now seeing the dangers of investing in a mega-IPOs. Furthermore, adding to investors concerns is China devaluing its currency last week, guiding the yuan to its lowest point in almost three years.
The question is now if Alibaba will be able to show its strength and determination in overcoming this financial crisis.