Alibaba called Barron's magazine’s forecast of a 50% drop in holding

    On September 12, Barron's, the American financial magazine, issued its forecast for a further fall in the shares of the Chinese holding Alibaba Group . According to the magazine, they may lose another 50% in price.

    At the end of August, the company's quotes fell (to $ 68) below the 2014 IPO. According to Barron's experts, Alibaba quotes may continue to fall amid a slowdown in China. Amid investors' concerns about a decrease in Chinese GDP growth this year by 7% lower than expected, the Shanghai Composite index fell by 2.7% at September 14, Reuters writes .

    In addition, Barron's experts criticized the holding's strategy. They believe that the simultaneous development of Alibaba in the field of media, logistics, cloud technology and retailing is detrimental to the holding.

    Representatives of Alibaba arguedly countered such bold statements of the magazine. Moreover, they declared the forecast completely erroneous. In a response letter from the Chinese holding, in particular, it was said that it was impossible to compare its performance with the results of eBay , since the latter does not work in China. Alibaba also transparently hinted that Barron's experts were simply juggling facts taken out of context.

    Alibaba said in response to criticism of its strategy that logistics is a key aspect of e-commerce. Therefore, they invest a lot in the development of logistics networks. The holding is engaged in cloud technologies, as it has technologies and developments that go beyond the core business of the company. The development of media in China is one of the most important tasks of the holding, as this is done for the benefit of the whole country. The Chinese media market is still in its infancy. Therefore, losses in this business are inevitable.

    The accusation of Barron's experts of incompetence runs through the whole thread.

    Megamind wrotethat on Tuesday, September 8, Alibaba shares in New York fell 4.7%, to $ 60.91. As a result, its capitalization decreased by $ 140.7 billion and amounted to $ 153 billion. However, CEO Daniel Zhang encouraged employees to focus on the long-term.

    Alibaba's IPO took place on September 19, 2014. The company managed to attract a record amount of $ 25 billion. At the first auction after the placement, shares of the company went up by about 40%, and in the first two months of trading - by 75%.

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