Alibaba Shares On Course To Enter Their First Bear Market

Alibaba's stock is on course to open at a three-month low, and is in danger of entering its first bear market since it debuted as a public company on Sept. 19, 2014. The stock was shedding 5.9% in premarket trade to $92.65, after the Chinese e-commerce giant reported disappointing sales growth, which puts it 22% below its highest closing price of $119.15 seen on Nov. 10. Many technicians believe a bear market is defined by a drop of 20% or more on a closing basis from a significant high, without an intervening 20% rally. A close below $95.32 would make a bear market official. The stock is still trading 36% above its initial public offering price of $68.