Alibaba Group Holding Ltd. shares have taken a tumble this summer – and according to a Barron’s cover story, they could be in store for a further 50-per-cent slide. As of Friday’s close, shares of the Chinese e-commerce giant had dropped by around 38 per cent on the year. On Monday, the first trading day since the Barron’s article was published, shares dropped 3.14 per cent to close at $62.60 (U.S.).
Many investors are spooked by the economic slowdown in China, where Alibaba is the No. 1 e-commerce player. The Barron’s story cites several reasons for the bearish outlook, including China’s economic woes and increased competition in the e-commerce sector. Alibaba struck back in a letter, saying th...
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