During the last 30 days, Alibaba Group Holding Ltd have witnessed a toughest time since it went public in September 2014. The company had faced several issues like Chinese regulator criticism, unsatisfactory revenues, and pile of lawsuits against them have dropped the company share price by almost 17% during the last month and bring it down to $86 , which is very close to its all-time low of $82.81. The company has to take some serious measures against these problems otherwise its share price will not take longer to reach its low point.
On Friday 20th, there was a new lawsuit filed against the company. An American law firm, Pomerantz suspects Alibaba of carelessness in revealing correct information prior to its IPO. The law firm claimed that the Chinese e-commerce firm issued “essentially wrong and misleading statement” about its regulatory inspection in Beijing.
The severe form of criticism from China’s regulators welcomed US law firms to target Alibaba. Since the State Administration for Industry & Commerce (SAIC) white paper incident last month, lawsuits liked the one filed by Pomerantz have also been filed by Dowd LLP and Wolf Popper LLC and Robbins Geller Rudman.
Jack Ma, Executive chairperson of Alibaba Group (NYSE:BABA), previously this month commended the employees of the company to stay calm over these lawsuits.
Alibaba Groups share were trading at a price of more than $100 per share one month ago. The company touched its all-time high of $120 in November. But on 28th January Chinese regulatory body SAIC issued a White Paper, that caused Alibaba share price to decline by 4%. On 29th January, Alibaba posted its fourth quarter earnings report, which was lower than the analysts’ predictions that further caused share price to decline by 8%. From that day company’s stock price has been jammed somewhere in between 80s and max $90.
Out of 42 analysts having coverage on Alibaba shares, 34 rate it as a Buy and only 2 have given it a sell rating. The sell-side has given a target price of $111 to Alibaba’s stock.
Alibaba Group Holdings limited (NYSE:BABA)stock is down by 1.35%, with share price of $85.47 at market close on Monday February 23rd, with 30-days average volume of 17.34 million shares. The Chinese e-commerce giant has a 52-week low of $82.81, and a 52-week high of $120.00, with market cap of $215.96 billion. The company’s price to earnings ratio of 47.47.