Alibaba Falls as CNBC Reports Chanos Is Pitching Short Trade
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Alibaba Group Holding Ltd. fell in New York trading after CNBC reported that Kynikos Associates LP founder Jim Chanos said investors should be bearish on the stock.
Chanos presented Alibaba as a short-sale trade at the Morgan Stanley Lyford conference on Friday, CNBC said, citing sources the news outlet didn’t identify. The sources said he mentioned “accounting concerns.” The shares plunged 5.4 percent before closing down 2.1 percent at $83.61, erasing an earlier gain of as much as 1.1 percent. He also recommended buying rival JD.com Inc. as a hedge on the bearish position, according to CNBC. The stock rose 3.1 percent to $29.70.