Chinese e-commerce juggernaut Alibaba is expected to lose further ground on the stock market later today with publication of its quarterly earnings.
It follows a tumultuous spell for the business since it first listed on the New York Stock Exchange last September when its share price rapidly rose to £119 – only to fall back to around $79 earlier this week.
Alibaba’s slide began in November amidst a lowering of revenue expectations, with analysts expected to scour its latest trading update for signs of a further slowdown.
The business has also been knocked by regulatory concerns within China, including an unprecedented attack by authorities their damning ‘illegal advertising’ on the platform.
Speaking to the Financial Times Shaun Rein, head of China Market Research Group, said: “There is a lot of concern about just how sustainable is the hype around Alibabaa. The share price went out of control after the IPO but all the hedge funds we were talking to said: ‘We want to get in before anyone else does, and we want to get out before anyone else does.’ ”
In an effort to address investor concerns Alibaba founder Jack Ma has initiated a hiring freeze amidst a general belt tightening policy to reduce costs.
