Alibaba Falls After Barron's Suggests Drop, Company Rebuts
- Story says stock could decline 50 percent on slower growth
- Alibaba rebuttal says comparison with EBay is misleading
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Alibaba Group Holding Ltd. shares fell Monday, the first day of trading since a Barron’s magazine article on Saturday suggested the Chinese Internet company may lose another 50 percent of its value.
The company, in a statement posted Monday on its website, said the article was inaccurate and misleading. Barron’s based its conclusion that the Chinese company is overvalued, in part, by comparing Alibaba’s share price as a multiple of earnings estimates with EBay Inc. Alibaba said the comparison is unfair because EBay’s online marketplace doesn’t do significant business in China.