Alibaba Group Holding’s stock price almost fell below the offering price set in the largest IPO in history as slow growth in its earnings rattled investors last week, said analysts.
Shares of the NYSE-listed Alibaba closed down $2.14 at $68.18 on Friday, leaving the stock just pennies above its 2014 IPO price of $68.
The fall in Alibaba’s stock came amid a plunge in the overall US stock market. The Dow Jones Industrial Average plummeted 530.9 points on Friday, concluding its worst week since 2011.
Alibaba’s arch-rival Baidu Inc slid by 2.85 percent to $152.9 on the NASDAQ. High-profile US tech company Twitter Inc fell below its 2013 IPO price on Thursday.
“The economic slowdown around the world, especially in China, worries global investors,” Lu Zhenwang, founder of Shanghai Wanqing Commerce Consulting, told the Global Times on Sunday.
In addition, investors have been bracing for the US Federal Reserve’s planned move to raise its benchmark interest rate in September. The Fed, however, has been sending mixed signals that have added uncertainty to the market, reports said.
“Besides the macroeconomic factors, Alibaba’s share slide is taking place because investors cannot see fast growth in either its core e-commerce business or fledgling operations,” said Lu.
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