Chinese e-commerce giant Alibaba saw its stock (NYSE:BABA) take a significant drop this week after the company released its quarterly results. BABA lost 15.51 percent of its value in the past five days and has been trading around 105.80 at the moment.
According to the report, Alibaba’s earnings per share were $2.65 compared to the expected $2.55. The revenue, however, hit $38.06 billion, although the analysts predicted $38.9 billion. While this was still 10 percent up from the same period last year, it also marked the slowest revenue growth since the company became public eight years ago.
Reacting to the decline of Alibaba’s stock, which is now more than 50 percent down this year, Chief Financial Officer Toby Xu said that the “current share price does not fairly reflect” the company’s value.
“At current price levels, we plan on continuing our share repurchases,” Xu added. “At the same time, we will maintain a strong cash position that gives us the financial flexibility for future investments.”
Several factors contribute to the continued decrease in Alibaba’s share prices. Perhaps the most significant one is China’s regulatory crackdown that caused investors to abandon Chinese stocks. Sluggish retail sales in the country and the rise of competitors also played a part.
