Pursuits
Alibaba's Wipeout Leaves Investors Questioning What Comes Next
- Top-ranked analyst expects drag on sales growth into 2016
- Acquisition strategy raising eyebrows as e-commerce slows
Alibaba One Year Later: Did IPO Disappoint?
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Alibaba Group Holding Ltd. looked like a sure thing a year ago when it pulled off the largest initial public offering ever. It had a lock on China e-commerce as the economy was surging and consumer spending was steadily rising. Shares soared 76 percent from the IPO price in just two months.
Then it all crumbled. Alibaba came under fire from a China government agency, it cut deals that baffled investors and it replaced its chief executive as growth slowed. Most important, China’s economy turned wobbly, jeopardizing the rise in consumer spending Alibaba needed. Its stock slid down, down, down to the IPO price and then below. The sure thing was no such thing.