Alibaba Stock Drops Following Third Quarter Results
Alibaba shares dropped by about 9.5 percent to $89 per share after the company’s third-quarter financial results. According to Business Insider, the Chinese e-retailer’s revenue rose 40 percent to $4.22 billion, though analysts predicted $4.42 billion.
Alibaba’s CEO Jonathan Lu said that merchandise volume across its China marketplace grew 49 percent year on year, and annual active buyers increasead 45 percent year on year to 334 million. He added that Alibaba delivered more than $1 billion in mobile revenue during the third quarter.
After going public on Sept. 17, the IPO was valued $68 per share, but opened for trading at $92.70. It reached its peak at $120 in November, but has been declining steadily since.