Alibaba’s rocky first six months

March 18, 2015

Open Sesame! Alibaba’s six-month lock-up period ended today, opening the door for the company to release an additional 337 million shares for sale. But news could be better for the Chinese e-commerce giantAs this Reuters graphic shows, Alibaba surged after its record-breaking $25 billion IPO last September. But since a Nov. 13 peak of $120, the stock has bled value, and is trading today just above $85 per share—down more than 29 percent since its November high.

Concerns about counterfeit goods being sold on Alibaba’s eBay-like TaoBao marketplace have contributed to the price decline, and hundreds of millions of shares potentially flooding the market present cause for worry among shareholders hoping to avoid a scenario like the 18 percent hit that Twitter took on the first day after its lock-up period expired. Yahoo!’s January 27 announcement of plans for a tax-free spin-off its 15 percent stake in Alibaba further contribute to dilution worries. Still, many analysts like the long-term prospects for Alibaba, despite a market cap that looks like its’s recently been plundered by 40 thieves.

Alibaba since IPO

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