Alibaba called Barron's magazine’s non-professional forecast of the holding’s 50% fall
On September 12, the US financial magazine Barron's released its forecast regarding the further fall in shares of the Chinese holding Alibaba Group . According to magazine estimates, they may lose another 50% in price.
In late August, the company's quotes fell (to $ 68) below the 2014 IPO price. According to Barron’s experts, Alibaba’s quotes may continue falling amid slowing economic growth in China. Against the background of investors' concerns about the decline in Chinese GDP growth this year, 7% lower than expected by the Shanghai Composite Index at the auction on September 14 fell by 2.7%, writes Reuters.
In addition, Barron's experts criticized the holding's strategy. They believe that the simultaneous development of Alibaba in the field of media, logistics, cloud technology and retailing is detrimental to the holding.
')
Representatives of Alibaba convincingly parried such bold statements of the magazine. Moreover, they announced the forecast completely erroneous. The response letter of the Chinese holding, in particular, states that it was impossible to compare its performance with the results of eBay , since the latter does not work in China. Alibaba representatives also hinted that Barron's experts simply juggled with facts taken out of context.
In response to criticism of their strategy, Alibaba said that logistics is a key aspect in e-commerce. Therefore, they invest a lot in the development of logistics networks. The holding was engaged in cloud technologies, as it has technologies and developments that go beyond the core business of the company. Media development in China is one of the most important tasks of the holding, as this is done for the benefit of the whole country. The Chinese media market is still in its infancy. Therefore, losses in this business are inevitable.
The common thread through the entire letter is the accusation of Barron's experts of incompetence.
Megamind wrote that on Tuesday, September 8, Alibaba shares in New York fell by 4.7% to $ 60.91. As a result, its capitalization decreased by $ 140.7 billion and amounted to $ 153 billion. However, the company's executive director, Daniel Zhang, called on its employees to focus on long-term prospects.
Alibaba’s IPO took place on September 19, 2014. The company managed to attract a record amount of $ 25 billion. At the first auction after the placement, the company's shares went up by about 40%, and for the first two months of the auction - by 75%.
In late August, the company's quotes fell (to $ 68) below the 2014 IPO price. According to Barron’s experts, Alibaba’s quotes may continue falling amid slowing economic growth in China. Against the background of investors' concerns about the decline in Chinese GDP growth this year, 7% lower than expected by the Shanghai Composite Index at the auction on September 14 fell by 2.7%, writes Reuters.
In addition, Barron's experts criticized the holding's strategy. They believe that the simultaneous development of Alibaba in the field of media, logistics, cloud technology and retailing is detrimental to the holding.
')
Representatives of Alibaba convincingly parried such bold statements of the magazine. Moreover, they announced the forecast completely erroneous. The response letter of the Chinese holding, in particular, states that it was impossible to compare its performance with the results of eBay , since the latter does not work in China. Alibaba representatives also hinted that Barron's experts simply juggled with facts taken out of context.
In response to criticism of their strategy, Alibaba said that logistics is a key aspect in e-commerce. Therefore, they invest a lot in the development of logistics networks. The holding was engaged in cloud technologies, as it has technologies and developments that go beyond the core business of the company. Media development in China is one of the most important tasks of the holding, as this is done for the benefit of the whole country. The Chinese media market is still in its infancy. Therefore, losses in this business are inevitable.
The common thread through the entire letter is the accusation of Barron's experts of incompetence.
Megamind wrote that on Tuesday, September 8, Alibaba shares in New York fell by 4.7% to $ 60.91. As a result, its capitalization decreased by $ 140.7 billion and amounted to $ 153 billion. However, the company's executive director, Daniel Zhang, called on its employees to focus on long-term prospects.
Alibaba’s IPO took place on September 19, 2014. The company managed to attract a record amount of $ 25 billion. At the first auction after the placement, the company's shares went up by about 40%, and for the first two months of the auction - by 75%.
Source: https://habr.com/ru/post/294488/
All Articles