NEW YORK – Shares of Chinese e-commerce powerhouse Alibaba fell almost 4 percent on Monday after a report in Barron's said the company's shares were due to decline.
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Alibaba's e-commerce platforms, including Taobao and Tmall, make up 80 percent of Chinese e-commerce. The company went public in the U.S. a year ago to great fanfare, and investors, seeking to tap into the rapidly growing Chinese middle-class, scrambled to buy shares.
But investor demand has faded as sales growth has slowed and the Chinese economy in general has become more volatile. The stock price is down 48 percent from its all-time high of $120.
On Saturday, trade publication Barron's published a report saying that Alibaba's stock could fall 50 percent further, citing increasing competition and the uncertain Chinese economy.
Alibaba responded to the report, saying it was inaccurate and "lacks three key ingredients - integrity, professionalism and fair play."
Shares fell $2.49, or 3.9 percent, to $62.14 in morning trading after trading as low as $61.48 earlier.