Investors in e-commerce firm Alibaba, have expressed concerns as the company’s shares plummeted massively on Monday, which has seen $28 billion wiped out of the company’s market value.
The company shares slumped more than 5% on Monday, trimming the month’s gain, as some market participants are worried whether Alibaba earnings can recover at the pace that’s been priced in.
Head of research at Ceb International inv. corp Ltd, Banny Lam disclosed that some investors have become cautious following the company’s sharp decline in price, as they await a fundamental recovery.
In his words, “Some investors are getting cautious after such a sharp rally, and they are waiting for data on a fundamental recovery, including earnings and business guidance. The stock will remain volatile in the near term.”
Investors King understands that Alibaba has been a pretty bad performer in 2022, as its shares slumped to a low of less than $60 per share during last year’s fall. However, the e-commerce giant shares gained massively in January 2023, after it extended its rally from an October low to 75%.
Also, shares of Alibaba reportedly surged after the company’s co-founder Jack Ma ceded control of fintech affiliate company Ant group, which potentially paved the way to revive plans for an initial public offering (IPO), by the tech giant. This saw Alibaba shares advance as much as 8.3%, which widened its gains to 27%.
According to reports, the e-commerce giant is possibly considering making a move out of its headquarters in China, to a new building in Singapore which is currently under construction.
Reports reveal that the size of the new location is big enough for the company to consider setting up a new corporate head office away from Beijing’s governmental oversight.
Meanwhile, despite Alibaba’s loss of share price on Monday, the company shares started the year on a very positive note, after it rose to 27% over the last 30 days.
