Alibaba shares rise 10%
As we saw in the previous part of this series, Alibaba (BABA) beat analysts’ expectations and delivered impressive fiscal 2Q16 results. After the earnings release, shares of this Chinese (MCHI) e-commerce giant rose 10%, the highest in the last two months.
Recently, Alibaba stock has suffered due to the troubled Chinese economy. This leading e-commerce giant witnessed a 10% fall in its stock value from last year’s successful debut, a $25 billion IPO (initial public offering) in the United States.
Alibaba shares are now back above its IPO price of $68. Shares of Alibaba rose to $78.31 after the release of its fiscal 2Q16 results. That an increase of 32% from its low of $57.20 on September 29, 2015. Alibaba stock also rose 2.6% on October 19 following Alibaba’s announcement of its $3.6 billion offer for a stake in Youku Tudou (YOKU), a Chinese video streaming site.
Alibaba recently faced criticism from influential investing magazine Barron’s, which published a negative story titled “Alibaba: Why It Could Fall 50% Further.” The cover story claimed that Alibaba’s stock could fall up to 50% and that the company is making up its performance numbers.
Alibaba responded to these claims strongly by issuing a letter to the editor, citing the piece as lacking “integrity, professionalism and fairness.”