Alibaba Shares Fell Below their First Public Offerings
Alibaba Group Holdings Ltd Shares fell below their initial public offering for the first time as stocks plunge and spooked the global market. The e-commerce giant tumbled 3.5 percent or close to $ 65 last Monday in New York falling below its September issue price of $68 and the S&P 500 and the Dow Jones Industrial Average went down 3.9 and 3.6 percent respectively.
$120 billion market value evaporated since Alibaba’s shares hit a record high of $119.2 last November but since then the stock performance was plagued with news of the weakened Chinese economy, freezing hiring and negligence on counterfeits and bogus transactions among vendors who wish to boost sales volume to gain prominence. Alibaba has promised to buy back around $ 4 billion of stocks in the next to year and announced that it is moving to offset dilutions from compensation programs and restore an investors confidence.
The buy back plan came as the company posted its quarterly sales that grew at its slowest pace in three years. Alibaba is not alone, as another US traded Chinese e-commerce company Jumei International Holdings have sank 15.7 percent and JD.om by 4.5 percent. Meanwhile search engine Baidu went down by 7.7 percent nd social networks such as Momo and Renren is at the edge at 9 percent.