Alibaba Group Holding Inc. shares tumbled almost 6% in early afternoon trade Wednesday, after the Chinese e-commerce giant reported weaker-than-expected revenue for its fiscal first quarter. The shares touched an all-time low of $71.03 earlier, their lowest level since the company went public last September. At that level, the stock is still 4.5% above its IPO price of $68, but well below the peak of $120 hit in November, equal to a 76% rise from the issue price. Wedbush analysts downgraded the stock after the earnings release and slashed their price target to $80 from $115. “We believe BABA offers a unique combination of size, growth and profitability,” analysts wrote in a note. “However, with a lower growth trajectory and heightened Chinese macro risk we are downgrading shares to neutral from outperform.”
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News